Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units:
$\begin{array}{llr}
\text {Direct materials } &\$12\
\text { Direct labour } &36\
\text { Variable manufacturing overhead} &18\
\text { Fixed manufacturing overhead } &24\
\end{array}$
The company has the capacity to produce 90,000 units.The product regularly sells for $120.
-Refer to the figure.If a wholesaler offered to buy 4,500 units for $100 each,what would be the effect of the special order on income?

Question

Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units:
$\begin{array}{llr}
  \text {Direct materials  } &\$12\
 \text { Direct labour } &36\
 \text {  Variable manufacturing overhead} &18\
 \text { Fixed manufacturing overhead } &24\
\end{array}$
 The company has the capacity to produce 90,000 units.The product regularly sells for $120.
-Refer to the figure.If a wholesaler offered to buy 4,500 units for $100 each,what would be the effect of the special order on income?

Quizplus · Accepted Answer

The Answer of Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units:
$\begin{array}{llr}
  \text {Direct materials  } &\$12\
 \text { Direct labour } &36\
 \text {  Variable manufacturing overhead} &18\
 \text { Fixed manufacturing overhead } &24\
\end{array}$
 The company has the capacity to produce 90,000 units.The product regularly sells for $120.
-Refer to the figure.If a wholesaler offered to buy 4,500 units for $100 each,what would be the effect of the special order on income?

Walton Company Manufactures a Product with the Following Costs Per