Additional operating expenses associated

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Reference no: EM131202380

The following information relates to the Dexter coy. for the upcoming year. Amount Per Unit Sales $ 5,200,000 $ 13.00 Cost of goods sold 3,800,000 9.50 Gross margin 1,400,000 3.50 Operating expenses 420,000 1.05 Operating profit $ 980,000 $ 2.45 The cost of goods sold includes $1,275,000 of fixed manufacturing overhead; the operating expenses include $130,000 of fixed marketing expenses. A special order offering to buy 50,300 units for $10.50 per unit has been made to Dexter. Fortunately, there will be no additional operating expenses associated with the order and Tram has sufficient capacity to handle the order. How much will operating profits be increased if Dexter accepts the special order?

Reference no: EM131202380

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