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  3. v1 a company has already incurred an $81,000 cost

V1 A company has already incurred an $81,000 cost in partially producing its three products...

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V1 A company has already incurred an $81,000 cost in partially producing its three products Their selling prices when partially and fully processed are shown in the table below with the additional costs necessary to finish their processing. Based on this information, Section I should any products be processed further? Unfinished Selling Finished Selling Price Further Processing Costs Product Price 43.20 $51.16 $70.50 81.10 $85.73 $97.22 $29.74 $36.61 $23.32 Section IV wear company is operating at 70% of its manufacturing capacity of 78,000 product units per year. A customer has offered to buy an additional 18,000 units at $41 each and sell them outside the country so as not to compete with Wear Company. The following data are available: Costs at 70% Capacity: Per Unit Total Direct materials Direct labor Overhead (fixed and variable) Totals $28.00 $1,528,800 163,800 382,200 $2,074,800 $38.00 In producing 18,000 additional units fixed overhead costs would remain at their current level but incremental variable overhead costs of $1.28 per unit would be incurred. What is the effect on total income if Wear Company accepts this order

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