(Solved):Walnut has received a special order for 2,900 units of its product at a special price of $230….

 

Question

Walnut has received a special order for 2,900 units of its product at a special price of $230. The product normally sells for $270 and has the following manufacturing costs:

Per unit
Direct materials $66
Direct labor 31
Variable manufacturing overhead 47
Fixed manufacturing overhead 117
Unit cost $261

Walnut is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Walnut accepts the order, what effect will the

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