Zilch Corporation manufactures a single product with the following unit costs for 1,250 units:Directmaterials $2,300...
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Zilch Corporation manufactures a single product with the following unit costs for 1,250 units:Directmaterials
$2,300
Directlabour
960
Factoryoverhead(30%variable)
1,800
Sellingexpenses(50%variable)
900
Administrativeexpenses(10%variable)
840
Totalperunit
$6,800
Recently, a company approached
Zilch Corporation about buying 100 units for $5,100 each. Currently, the models are sold to dealers
for $7,900. Zilch Corporation's capacity is sufficient to produce the extra 100 units. No additional selling expenses would be incurred on the special order.
How much will income change if the special order is accepted?
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