Lta company produces a single product. the cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is: direct materials $ 5.10 direct labor $ 3.80 variable manufacturing overhead $ 1.00 fixed manufacturing overhead $ 4.20 variable selling and administrative expense $ 1.50 fixed selling and administrative expense $ 2.40 the normal selling price is $21 per unit. the company's capacity is 75,000 units per year. an order has been received from a mail-order house for 15,000 units at a special price of $14.00 per unit. this order would not affect regular sales. required: 1. if the order is accepted, by how much will annual profits be increased or decreased? (the order will not change the company's total fixed costs.)
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