ABC Inc. is approached by a potential customer to...
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ABC Inc. is approached by a potential 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 =$130 - Direct labor =$60 - Manufacturing support =$105 - Marketing costs =$95 Fixed costs: - Manufacturing support =$175 - Marketing costs =$65 - Total costs =$630 - Markup(50%)=$315 - Targeted selling price =$945 What is the increase in operating profits if the one-time-only special order for 1,030 units is accepted for $550 a unit by ABC Company
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