Reference no: EM133163745

Question - Glade Company produces a single product. The cost of producing and selling a single unit of this product at its current activity level of 8,000 units per month are:

DM per unit $2.50

DL per unit $3.00

Var MOH per unit $0.50

Fixed MOH per unit $4.25

Var selling and admin per unit $1.50

Fixed selling & admin estimated per unit $2.00

The normal selling price is $15. Glade's capacity is 10,000 units per month. An order has been received by a potential customer overseas for 2,100 units at a price of $12 per unit. If the order is accepted, calculate the income for this special order (round to nearest dollar).