Homework Answers
Ans is $737,000 increase
| Selling Price | 46 |
| Less | |
| Direct material cost | 14 |
| Direct labor | 11 |
| Variable overhead | 10 |
| Total cost | 35 |
| Incremental revenue per unit | 11 |
| Total incremental revenue | 11*67000 |
| 737000 | |
| Note:- | |
| Transportation cost will not be considered because it will be borne by the customer | |
| No fixed overhead cost will have occurred because it is within the overall capacity of the company | |
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