Question 3 (of 36) Pinto Co has received a special order for 2.500 units of ts p

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Question 3 (of 36) Pinto Co has received a special order for 2.500 units of ts product at a special pice of $230 The product normally sells for $290 and has the following manufocturing costs Direct materials Direct labor Variable manufacturing overhead Flxed manufacturing overhead s 83 56 62 Go 5 261 Unn cost Assume that Pinto Co has sufficient capacity to fill the the order without horming normal production and sales If Pinto Co accepts the order what efflect will the order have on the company's shot torm prof O $150,000 decrease O $77500 increase O $72.500increase O $77500 decrease 0 Type here to search

Explanation / Answer

Solution:- $ 72,500 increase

Explanation:-

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Particulars Amount Incremental revenue per unit 230 Incremental cost per unit (83 + 56 + 62) 201 Incremental profit per unit 29 Total incremental profit (2,500 * 29) 72,5,00

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