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How will profit change

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Question - Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. Welch Manufacturing has enough excess capacity to fill the order without affect other sales. The following per unit data apply for sales to regular customers:

Variable costs per unit

Direct materials 40

Direct labor 19

Manufacturing Overhead 39

Packaging costs 13

Fixed costs allocated per unit

Manufacturing Overhead 45

Packaging costs 15

The normal selling price is 255 per unit, how will profit change if they take an order for 5000 units at a price of $175 per unit?

Reference no: EM132823153

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