Conquer Corporation manufactures pens- When 100-000 pens are produced-.pdf
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Conquer Corporation manufactures pens. When 100,000 pens are produced, the costs per pen are: Direct materials $0.50 Direct manufacturing labor 0.25 Variable manufacturing overhead 0.30 Variable selling 0.10 Fixed manufacturing overhead 0.20 Fixed selling 0.25 Total $1.60 The pens normally sell for $4 each. Best Industries has received a special order for 25,000 pens at $1 per pen. Best Industries has excess capacity. Required: Should the special order be accepted? Compute the amount by which the operating income would change if the order were accepted. What is the minimum the pen should be sold for to break even in a special order?.
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