ABC Company produces a single unit that it sells for $20 per unit. ABC has the capacity to produce 2
ABC Company produces a single unit that it sells for $20 per unit. ABC has the capacity to produce 28,000 units each month. ABC is currently selling 19,000 units each month. The costs associated with each unit appears below: direct materials direct labor variable overhead fixed overhead variable selling costs fixed selling costs $5.00 2.50 1.50 1.00 4.00 0.75 ABC Company has received a special order from a customer who wants to purchase 15,000 units at a reduced price of $16 per unit. ABC Company has determined that there would be no selling expenses in connection with this special order. However, there would be an increased direct material cost of $2 per unit for the special order units. Calculate the increase in company profits if ABC Company accepts the special order 33,000
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