Business, 21.12.2020 23:20 iliketurtures

Fulton Company has a maximum capacity level of 65,000 units per month. Each unit regularly sells for $7. Unit costs at this level are:Direct materials $0.55Direct labor $0.80Variable overhead $0.20Fixed overhead $0.25Marketing - fixed $0.35Marketing – variable $0.45Current monthly sales are 65,000 units. Cherokee Company has contacted Fulton Company about purchasing 7,000 units at $4.50 each. The special order would require $1 per unit for shipping. Fulton is now selling 65,000 units through regular channels each period, which require $0.40 per unit for shipping. Marketing costs would not be incurred on the special order. What is Fulton Company’s change in operating profits if the special order is accepted?A) $18,550 DecreaseB) $13,650 IncreaseC) $17,850 IncreaseD) $4,750 Decrease

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Fulton Company has a maximum capacity level of 65,000 units per month. Each unit regularly sells for...

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