A Customer Has Asked Twiner Corporation to Supply 5,000 Units

question 36

Essay

A customer has asked Twiner Corporation to supply 5,000 units of product D05,with some modifications,for $40.20 each.The normal selling price of this product is $52.80 each.The normal unit product cost of product D05 is computed as follows: Direct labor is a variable cost.The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like some modifications made to product D05 that would increase the variable costs by $3.50 per unit and that would require a one-time investment of $23,000 in special molds that would have no salvage value.This special order would have no effect on the company's other sales.The company has ample spare capacity for producing the special order.
Required:
Determine the effect on the company's total net operating income of accepting the special order.Show your work!

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Definitions:

Second Wave

Refers to the second wave of the feminist movement, which took place during the 1960s to 1980s, focusing on issues such as equality in the workplace, reproductive rights, and legal inequalities.

Feminist Activists

Individuals who advocate for and work towards equal rights and opportunities for women, often focusing on issues such as gender equality, reproductive rights, and combating gender-based violence.

Nonsexist Child Raising

Parenting practices aimed at promoting gender equality and avoiding the reinforcement of stereotypes, encouraging children to pursue interests and activities irrespective of gender.

Contemporary Feminism

The current movement and ideologies aimed at defining, establishing, and defending equal political, economic, and social rights for women.