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What the effect of the special order on income

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Reference no: EM132993106

Problem - WEB manufactures a product with the following costs per unit at the expected production level of 84,000 units:

Direct materials RM12

Direct labor 36

Variable manufacturing overhead 18

Fixed manufacturing overhead 24

The company has the capacity to produce 90,000 units. The product regularly sells for RM1 20.

If a wholesaler offered to buy 4,500 units for RM100 each, what the effect of the special order on income?

Reference no: EM132993106

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