Quan Company currently makes 10,000 machinery parts a year. The cost per unit to produce...
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Quan Company currently makes 10,000 machinery parts a year. The cost per unit to produce a part is: Cost per unit Direct materials $17 Direct labor $11 Variable manufacturing overhead $15 Fixed manufacturing overhead $20 An outside supplier has offered to sell 9,000 parts to the company for $55 per unit. If the company accepts the outside offer, what will be the effect on operating profit? $72,000 decrease $90,000 increase $180,000 increase $108,000 decrease Jaguar Company has received a request for a special order for 200 units of its product for a discounted price of $1,650. The product normally sells for $2,000 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Cost per unit $500 $200 $100 $500 Assume that the company has excess capacity. What is the incremental profit if the special order is accepted? Nova Corporation currently sells 16,000 units of their only product each month for $50 per unit. Variable cost per unit is $20. Total fixed costs each month are $300,000. If the price is increased to $62 and the number of units sold, variable cost per unit, and fixed costs remain the same, how much will the net operating income increase
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