Rosario Manufacturing Company Had the Following Unit Costs A One-Time Customer Has Offered to Buy 2,750 Units at Direct

question 42

Multiple Choice

Rosario Manufacturing Company had the following unit costs: $\begin{array}{lr}\text { Direct materials } & \$ 24 \\\text { Direct labor } & 8 \\\text { Variable factory overhead } & 10 \\\text { Fixed factory overhead (allocated) } & 18\end{array}$ A one-time customer has offered to buy 2,750 units at a special price of $49 per unit. Assuming that sufficient unused production capacity exists to produce the order and no regular customers will be affected by the order, how much additional profit (loss) will be generated by accepting the special order?

• A)$134,750 profit
• B)$19,250 profit
• C)$84,000 loss
• D)$16,500 loss

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