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Stolb23 [73]
3 years ago
10

The following information relates to a product produced by Faulkland Company:

Business
1 answer:
kvv77 [185]3 years ago
4 0

Answer:

$305,000 increased

Explanation:

As the total unit cost is given i.e $23

And, the customer has offered to buy 61,000 units at $22 each

In the case of special order, the effect on operating profits is

= Difference of cost × number of units to be offered for buying

= $5 × 61,000 units

= $305,000 increased

The difference is

= Buying price offered - direct material per unit - direct labor per unit - variable overhead per unit

= $22 - $8 - $5 -$4

= $5

The selling cost is not included. Hence, ignored it

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<h3>brainly.com/question/4522984</h3><h3 /><h3>#SPJ4</h3>

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