Find what real effect on profit if the order is accepted

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Reference no: EM132707815

Sipacore Metal Works received an offer from a big-box retail company to purchase 3,300 metal outdoor tables for $240 each. Sipacore Metal Works accountants determine that the following costs apply to the tables:

Direct material $110
Direct labor50
Manufacturing overhead 68
Total $228

Of the $68 of overhead, $13 is variable and $55 relates to fixed costs. The $55 of fixed overhead is allocated as $1.10 per direct labor dollar.

Problem 1: What will be the real effect on profit if the order is accepted?

Reference no: EM132707815

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