Distributing costs would not be incurred on special order

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Reference no: EM131211113

Northern Glass Manufacturing has a current production level of? 200,000 glass jars per month.

Unit costs at this level? are:

Direct materials ?$0.345

Direct labour 0.400

Variable overhead 0.175

Fixed overhead 0.100

Marketing Fixed 0.100 ?

Marketing/distribution − Variable 0.200

Current monthly sales are? 180,000 units. Canadian Hardware Ltd. has contacted Northern Glass Manufacturing about purchasing? 15,000 units at? $1.00 each. Current sales would not be affected by the special? order, and variable? marketing/ distributing costs would not be incurred on the special order. What is Northern? Glass' change in profits if the order is? accepted?

Reference no: EM131211113

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