Rose Manufacturing Company Had the Following Unit Costs A One-Time Customer Has Offered to Buy 2,000 Units at Direct

question 58

Multiple Choice

Rose Manufacturing Company had the following unit costs: $\begin{array}{lr}\text { Direct materials } & £ 24 \\\text { Direct labour } & 8 \\\text { Variable factory overhead } & 10 \\\text { Fixed factory overhead (allocated) } & 18\end{array}$ A one-time customer has offered to buy 2,000 units at a special price of £48 per unit. 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)£12,000 profit
• B)£96,000 profit
• C)£84,000 loss
• D)£24,000 loss

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