Unit manufacturing costs 2445 unit variable marketing costs

Reference no: EM13481259

Unit Manufacturing Costs $2,445 Unit Variable Marketing Costs $1045 March 1 Hospital Supply has an offer made by the govt. to supply 500 units. Hospital Supply plans to provide 4,000 units during March. If the contract is accepted, 500 units normally sold to customers would go to competitors. The contract would reimburse the govt share of March production cost and pay a fixed fee (profit) of $275,000. What impact would accepting the government contract have on March Income?

Reference no: EM13481259

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