Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:Variable costs:Direct materials$150Direct labor90Manufacturing support115Marketing costs85Fixed costs:Manufacturing support165Marketing costs55Total costs660Markup (40%) 264Targeted selling price$924What is the change in operating profits if the one-time-only special order for 1,020 units is accepted for $540 a unit by Coroid? A.$102,000 increase in operating profitsB.$101,340 increase in operating profitsC.$102,000 decrease in operating profitsD.$101,340 decrease in operating profits
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Home » Business » Coroid Manufacturers Inc. is approached by a European customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity.