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Find what will be real effect on profit iforder is accepted

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Reference no: EM132974307

Dynatech Metal Works received an offer from a big-box retail company to purchase 3,600 metal outdoor tables for $256 each. Dynatech Metal Works accountants determine that the following costs apply to the tables:

Direct material $160

Direct labor 60

Manufacturing overhead 84

Total $304

Of the $84 of overhead, $17 is variable and $67 relates to fixed costs. The $67 of fixed overhead is allocated as $1.30 per direct labor dollar.

Problem (a) What will be the real effect on profit if the order is accepted?

Reference no: EM132974307

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