Zephram Corporation has a plant capacity of 200,000 units per
month. Unit costs at capacity are: Direct materials $6.00 Direct
labor 5.00 Variable overhead 4.00 Fixed overhead 2.00
Marketing—fixed 6.00 Marketing/distribution—variable 4.60 Current
monthly sales are 190,000 units at $30.00 each. Q, Inc., has
contacted Zephram Corporation about purchasing 2,500 units at
$24.00 each. Current sales would not be affected by the
one-time-only special order.
What is Zephram's change in operating profits if the
one-time-only special order is accepted?