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(Solved): A customer has asked Bran Corporation to supply 6,000 units of product GOT6, with some modifications ...



A customer has asked Bran Corporation to supply 6,000 units of product GOT6, with some modifications. The normal selling price of this product is $46.50 per unit. The normal unit product cost of product GOT6 is computed as follows: Direction Materials………………………..$16.40 Direct Labor…………………………….............8.30 Variable Manufacturing Overhead……..4.40 Fixed Manufacturing Overhead…………1.90 Unit Product Cost……………………….....$31.00 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 GOT6 that would increase the variable costs by $8.90 per unit and that would require a one-time investment of $20,000 in special molds that would have no future use. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Determine the effect on the company's total net operating income of accepting the special order for a selling price of $31.30 per unit



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