Fern Valley Ltd reports the following data from this year's master budget:
$$\begin{array} { l c r }
& \text { Per unit } & \text { Total } \
\text { Variable manufacturing cost } & \$ 18 & \
\text { Fixed manufacturing cost } & \$ 6 & \$ 24000 \
\text { Fixed selling and administrative expense } & \$ 2 & \$ 4000
\end{array}$$
Fern Valley Ltd's capacity is 20 000 units per year, and the normal selling price is $35 per unit. A one-time-only order for 1200 units has been received at a special price of $30 per unit. The order would not disturb regular business. If the order is accepted, overall profit will increase by:

Question

Fern Valley Ltd reports the following data from this year's master budget:
$$\begin{array} { l c r } 
& \text { Per unit } & \text { Total } \
\text { Variable manufacturing cost } & \$ 18 & \
\text { Fixed manufacturing cost } & \$ 6 & \$ 24000 \
\text { Fixed selling and administrative expense } & \$ 2 & \$ 4000
\end{array}$$
Fern Valley Ltd's capacity is 20 000 units per year, and the normal selling price is $35 per unit. A one-time-only order for 1200 units has been received at a special price of $30 per unit. The order would not disturb regular business. If the order is accepted, overall profit will increase by:

Quizplus · Accepted Answer

The Answer of Fern Valley Ltd reports the following data from this year's master budget:
$$\begin{array} { l c r } 
& \text { Per unit } & \text { Total } \
\text { Variable manufacturing cost } & \$ 18 & \
\text { Fixed manufacturing cost } & \$ 6 & \$ 24000 \
\text { Fixed selling and administrative expense } & \$ 2 & \$ 4000
\end{array}$$
Fern Valley Ltd's capacity is 20 000 units per year, and the normal selling price is $35 per unit. A one-time-only order for 1200 units has been received at a special price of $30 per unit. The order would not disturb regular business. If the order is accepted, overall profit will increase by:

Fern Valley Ltd Reports the Following Data from This Year's