Business, 16.07.2019 07:00 phavion

Perennial company, a manufacturer of decorative pots, expects sales of 500,000 pots at $10 each during the coming year. variable manufacturing costs are $4 per unit and fixed manufacturing costs are $2.50 per unit. the company received a special order from an overseas customer to purchase 50,000 pots at $6 each. the company has sufficient plant capacity to manufacture this order. however, additional overtime labor costs of $1.00 per pot would be required to produce the pots. no other costs would be incurred as a result of accepting the order. if the special order is accepted, how will operating profit be impacted?

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Perennial company, a manufacturer of decorative pots, expects sales of 500,000 pots at $10 each duri...

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