The parton company has gathered the following information for a unit of its most popular product: direct materials $ 20 direct labor 15 overhead (60% variable) 20 cost to manufacture $ 55 the above cost information is based on 10,000 units. parton currently sells 8,500 units for $62 per unit. a distributor has offered to buy 1,000 units at a price of $50 per unit. this special order would not disturb regular sales. required: a. calculate parton's change in operating profits if the special order is accepted. b. how many units of regular sales could be lost before this contract is not profitable?

Instructions are listed below.

Explanation:

Giving the following information:

Direct materials $ 20

Direct labor 15

Overhead (60% variable) 20

Cost to manufacture $ 55

The above cost information is based on 10,000 units.

Parton currently sells 8,500 units for $62 per unit.

A distributor has offered to buy 1,000 units for $50 per unit.

We will have into account only the variable costs:

Unitary variable cost= 20 + 15 + (20*0.60)= 47

A) Increase in income= (50-47)*1000= $3,000

B) Regular units= 3000/(62 - 55)= 429 units

answer; /// i do believe the correct answer is (30,000);

hyhggefmvz

bbmzbmzgzmkgsgzkhxldluox