HASF Furniture Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000 sets per year. The manufacturing costs 155 (include $85 for materials and $45 for labor per set). The overhead entirely of fixed costs. Modern furniture’s is considering a special purchase offer from a large retail firm, which has offered to buy 600 sets per year for three years at a price of $150 per set. Modern furniture has the available plant capacity to produce the order and expects no other orders or profitable alternative uses of the plant capacity. Calculate Amount of profit that will increaes after accepting the special order Revenue increase after accepting the order Cost increase after accepting the order
HASF Furniture Inc. manufactures a moderate-price set of lawn furniture (a table and four chairs) that it sells for $225. It currently manufactures and sells 6,000 sets per year. The
Calculate
Amount of profit that will increaes after accepting the special order
Revenue increase after accepting the order
Cost increase after accepting the order
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