Business, 20.12.2019 21:31 fordkenae

Wagner company sells product a for $21 per unit. if wagner operates at full production capacity of 200,000 units, its manufacturing cost per unit are as follows: direct materials $4.00direct labor 5.00overhead, 2/3 of which is fixed 6.00total $15.00a special order for 20,000 units was received from a foreign distributor. the foreign distributor offered $14.50 per unit. the only selling costs on this order would be $3.00 per unit for shipping. wagner has sufficient capacity to manufacture the additional units. fixed overhead costs would not be affected if the special order is accepted.

required:

(1) compute the gain or loss if the customer’s offer is accepted.
(2) calculate the price per unit at which the special order would generate a $20,000 profit before taxes.

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Wagner company sells product a for $21 per unit. if wagner operates at full production capacity of 2...

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