Business, 26.07.2019 02:20, ineedhelp773

Harcourt manufacturing (hm) has the capacity to produce 10,000 fax machines per year. hm currently produces and sells 7,000 units per year. the fax machines normally sell for $100 each. modem products has offered to buy 2,000 fax machines from hm for $60 each. unit-level costs associated with manufacturing the fax machines are $15 each for direct labor and $40 each for direct materials. product-level and facility-level costs are $50,000 and $65,000, respectively. how much would profit increase (decrease) if hm accepted this special order?
$10,000
$112,000
$10,000
$112,000

Answers: 1

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Harcourt manufacturing (hm) has the capacity to produce 10,000 fax machines per year. hm currently p...