Rexeleg Company manufactures a product with the following costs per unit at the expected production...
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Accounting
Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units: Direct materials $3.8 Direct labor 7.38 Variable overhead 5.44 Fixed overhead 7.16 The company has the capacity to produce 50,000 units. The product regularly sells for $50. A wholesaler has offered to pay $43 per unit for 3,000 units. Assume that Rexeleg has excess capacity. If the firm chooses to accept the special order the effect on operating income would be? Report gains as a positive number. Report losses as a negative number (with a minus sign)
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