LL company budgeted 100,000 units for production during 2019. The following cost per unit information...
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LL company budgeted 100,000 units for production during 2019. The following cost per unit information is available: direct material = $5, direct labour = $10, variable manufacturing overhead = $4, variable selling per unit= $2. LL sells at $50 market price.
It received a special order for 10,000 units from a new customer in a country in which LL has never done business. This customer has offered special order price at $22 per unit. If LL accepts the order, there will be no related selling expenses for this order. LL has enough capacity to accept the order, without affecting its normal production plan.
If LL accepts this order, then the incremental contribution the order is making = $.............
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