A manufacturer of protein cookies incurs the following costs to manufacture each box of cookies: Direct materials $24

Accounting Oct 20, 2020

A manufacturer of protein cookies incurs the following costs to manufacture each box of cookies:

Direct materials $24.00

Direct labour $8.00

Variable overhead $10.00

Fixed overhead (allocated) $18.00

A one-time customer has offered to buy 2,000 boxes of cookies at a special price of $48 per unit. Assuming that sufficient unused production capacity exists to produce the order and no regular customers will be affected by the order, how much additional profit or loss will be generated by accepting the special order?

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