Zephram Corporation can produce 200,000 units per year.
month. Costs per unit at capacity: Direct materials $6.00
Labor 5.00 Fixed overhead 4.00
Marketing—fixed 6.00 Marketing/distribution—variable 4.60 Current
Monthly sales at $30.00 per unit are 190,000. Q, Inc.
Zephram Corporation was contacted about buying 2,500 units.
$24.00 each. The new price would not affect current sales
Special order for one time only
How much did Zephram see its operating profit change if it was a 5% increase?
One-time special orders are accepted
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