HandleyMetal Works received an offer from a big-box retail company to purchase3,000metal outdoor tables for...
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Accounting
HandleyMetal Works received an offer from a big-box retail company to purchase3,000metal outdoor tables for $216each.HandleyMetal Works accountants determine that the following costs apply to the tables:
Direct material$130Direct labor50Manufacturing overhead70Total$250
Of the $70of overhead, $14is variable and $56relates to fixed costs. The $56of fixed overhead is allocated as $1.10per direct labor dollar.
(a)What will be the real effect on profit if the order is accepted?
The profit will increase or decrease
by= $. enter a dollar amount
.
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