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How much additional profit will be generated

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Question - Boone Products had the following unit costs:

Direct Material £24

Direct Labour £10

Variable factory overhead £8

Fixed factory overhead(allocated) £18

A one-time customer has offered to buy 2,000 units at a special price of £48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is £8 per unit. How much additional profit (loss) will be generated by accepting the special order?

A) £30,000 loss

B) £24,000 loss

C) £4,000 profit

D) £4000 loss

Reference no: EM133115363

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