Business, 15.02.2021 19:50 notsosmart249

Speedo produces signature goggles which it sells for $35. The company produces 15,000 pairs of these goggles annually but has the capacity to produce 20,000. An order for manufacturing and selling 1,000 pairs at $25 has been received from the U. S. Olympic swim team that would not disrupt current operations. Current costs for the signature goggles are as follows: Direct materials $ 6.00 Direct labor 10.00 Variable overhead 3.00 Fixed overhead 8.00 Total $27.00 In addition, the Olympic coach would like to add the U. S. Olympic logo to each pair which would require an additional $2 per pair of goggles in additional labor costs. The company would also have to rent a logo stamper to stamp the logo which would cost $600. Which statement is true with regard to this order? A. Incremental profit will be $4,000. B. Incremental costs will be $27,000. C. Incremental costs will be $21,600. D. Incremental costs will exceed incremental revenues by $4,600.

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Speedo produces signature goggles which it sells for $35. The company produces 15,000 pairs of these...

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