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What will be the total profit

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Reference no: EM133041146

Problem - The MNK Company has gathered the following information for a unit of its most popular product:

Direct materials 6.00 per unit

Direct labor 3.00 per unit

Variable Overhead 3.00 per unit

Fixed Overhead 3.00 per unit

Selling price 24.00 per unit

The above cost information is based on 4,000 units. A foreign distributor has offered to buy 1,000 units at a price of $16 per unit. This special order would not disturb regular sales. Additional variable shipping and other selling expenses would be $1 per unit for the special order.

Required - What will be the total profit before the special order is calculated and the total profit after the special order is calculated?

Reference no: EM133041146

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