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Unformatted text preview: for producing the special order. Required: Determine the effect on the company's total net operating income of accepting the special order. Show your work! (Points: 15) Calculation of Variable Expenses Direct Materials $18.50 Direct Labor $1.20 Variable Manufacturing Overhead $8.40 Extra Variable Expenses $5.70 Total Variable Costs $33.80 Calculation of Product Margin Per Unit Sales Price $40.10 Less: Total Variable Costs $33.80 Product Margin Per Unit $6.30 Calculation of the Effect on Net Operating Income Product Margin Per Unit $6.30 Number of Units in Special Order 4,000 Total Special Order Revenue $25,200 Less: Cost of Special Molds $31,000 Effect on Net Operating Income ($5,800)...
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This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.
- Spring '11