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What is the differential profit of the proposed order

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Reference no: EM132819862

Question - Williams Co. receives an order for one of its products. The order demands a 20% discount from the standard price, but would be for a sizable volume: 10808 units. Williams typically sells the product for $17 per unit and incurs production costs of $312454 fixed and $7.5 variable for the 102200 units it produces in an average month. In addition, Williams incurs $257076 in fixed marketing and administration costs. Williams' factory is currently operating at 60% of capacity. What is the differential profit of the proposed order?

Reference no: EM132819862

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