What will be the real effect on profit if order is accepted

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Question - Uli Metal Works received an offer from a big-box retail company to purchase 2,640 metal outdoor tables for $192 each. Uli Metal Works accountants determine that the following costs apply to the tables:

Direct material $112

Direct labor 44

Manufacturing overhead 61

Total $217

Of the $61 of overhead, $12 is variable and $49 relates to fixed costs. The $49 of fixed overhead is allocated as $0.98 per direct labor dollar.

Required - What will be the real effect on profit if the order is accepted?

Reference no: EM132941182

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