The manager at Total One manufacturing reported a plant capacity of 225,000 units per month.Unit costs at capacity were reported as follows:

The current sales were reported as $190,000 at $31.00 per unit.The manager at Quality Manufacturing contacted the manager at Total One Manufacturing about the purchase of 2,200 units at $25 per unit.Current sales would not be affected by the one-time-only special order.What is the change in operating profit at Total One Manufacturing if the one-time-only special order is accepted?
A)$10,100 increase
B)$10,250 decrease
C)$12,650 increase
D)$14,230 decrease
E)$16,500 increase

Question

The manager at Total One manufacturing reported a plant capacity of 225,000 units per month.Unit costs at capacity were reported as follows:

The current sales were reported as $190,000 at $31.00 per unit.The manager at Quality Manufacturing contacted the manager at Total One Manufacturing about the purchase of 2,200 units at $25 per unit.Current sales would not be affected by the one-time-only special order.What is the change in operating profit at Total One Manufacturing if the one-time-only special order is accepted?
A)$10,100 increase 
B)$10,250 decrease 
C)$12,650 increase 
D)$14,230 decrease 
E)$16,500 increase

Quizplus · Accepted Answer

C)[($5 + $7 + $4.50 + $2.75)] = $19.25
[($25 - $19.25)× 2,200] = $12,650 change in operating profits

The Manager at Total One Manufacturing Reported a Plant Capacity