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Albatross Products Had the Following Unit Costs A One-Time Customer Has Offered to Buy 2,000 Units at r

Question 97

Multiple Choice

Albatross Products had the following unit costs:  Direct materials $24 Direct labor 10 Variable factory overhead 8 Fixed factory overhead (allocated)  18\begin{array} { l r } \text { Direct materials } & \$ 24 \\\text { Direct labor } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array} A one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit (loss) will be generated by accepting the special order?


A) $30,000 loss
B) $4,000 profit
C) $24,000 loss
D) $4,000 loss

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