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Question - HASF Furniture Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000 sets per year.
The manufacturing costs 155 (include $85 for materials and $45 for labor per set). The overhead entirely of fixed costs.
Modern furniture's is considering a special purchase offer from a large retail firm, which has offered to buy 600 sets per year for three years at a price of $150 per set.
Modern furniture has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity.
Note: No need to enter currency symbol and comma and % just type numbers 2 decimal number and percentages (if needed) according to excel (for example: 10000 or 10.65)
Required - At what amount of profit increase after accepting the special order?
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