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Figure 9-9
Boone Products Had the Following Unit Costs -Refer to Figure 9-9

Question 47

Multiple Choice

Figure 9-9
Boone Products had the following unit costs:  Direct materials £24 Direct labour 10 Variable factory overhead 8 Fixed factory overhead (allocated)  18\begin{array}{lr}\text { Direct materials } & £ 24 \\\text { Direct labour } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array}
-Refer to Figure 9-9. A one-time customer has offered to buy 1,000 units 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 (loss) will be generated from the special order?


A) £12,000 loss
B) £14,000 profit
C) £48,000 profit
D) £6,000 profit

Correct Answer:

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