The parton company has gathered the following information for a unit of its most popular product: direct materials $ 20 direct labor 15 overhead (60% variable) 20 cost to manufacture $ 55 the above cost information is based on 10,000 units. parton currently sells 8,500 units for $62 per unit. a distributor has offered to buy 1,000 units at a price of $50 per unit. this special order would not disturb regular sales. required: a. calculate parton's change in operating profits if the special order is accepted. b. how many units of regular sales could be lost before this contract is not profitable?
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