4. Gundy Company manufactures a product with the following costs per unit at the expected...
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Accounting
4. Gundy Company manufactures a product with the following costs per unit at the expected production of 30,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $4 12 The product regularly sells for $40. Fixed M&A expenses are $25,000 and variable M&A expenses are $2/unit. A wholesaler has offered to pay $32 a unit for 2,000 units, and variable M&A expenses can be avoided. If the firm is at capacity and the special order is accepted, the effect on operating income would be
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