A customer has asked clougherty corporations to supply 4000

Reference no: EM13610592

A customer has asked Clougherty corporations to supply 4000 units of product M97, with some modifications for $40.10 each. The normal selling price for this unit is $48.00 each. The normal unit product cost of production M97 is computed is follow. Direct material $ 18.50, Direct labor is $ 1.20, variable manufacturing overhead is $ 8.40 fixed manufacturing overhead is $ 3.90, unit production is $ 32.00 Direct labor is a variable Determine the effect on the company's total net operating income of accepting the special order. please show work for references. Direct labor is a variable cost. The special order would have no effect on the company's total manufacturing overhead costs. The customer would like some modifications made to product M97 that would increased the variable costs by $5.70 per unit that would require a one time investment of $31,000 in special molds that would have no salvage value. The special mold would have no affects on the company's total net operating income. Determine the effect on the company's total net operating income of accepting the special order.

Reference no: EM13610592

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