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wehrs Corporation has received a request for a special order of 9,900 units of product...

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Accounting

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wehrs Corporation has received a request for a special order of 9,900 units of product K19 for $4740 each. The normal selling price of this product is $52.50 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product K19 is computed as follows $18.20 7.50 Direct materials Direct labor Variable nanufacturing overhead Fixed manufacturing overhead Unit product cost 4.70 7,60- $38.00 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product K19 that would increase the vaniable costs by $710 per unit and that would require a one-time investment of $46,900 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order Required: Determine the effect on the company's total net operating income of accepting the special order Prev 24 of 31

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