Albatross Products Had the Following Unit Costs A One-Time Customer Has Offered to Buy 2,000 Units at r

question 97

Multiple Choice

Albatross Products had the following unit costs: $$\begin{array} { l r } \text { Direct materials } & \$ 24 \\\text { Direct labor } & 10 \\\text { Variable factory overhead } & 8 \\\text { Fixed factory overhead (allocated) } & 18\end{array}$$ A one-time customer has offered to buy 2,000 units at a special price of $48 per unit. Because of capacity constraints, 1,000 units will need to be produced during overtime. Overtime premium is $8 per unit. How much additional profit (loss) will be generated by accepting the special order?

• A)$30,000 loss
• B)$4,000 profit
• C)$24,000 loss
• D)$4,000 loss

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