The effect on operating profits would be a $1,925,760 increase
Explanation:
The computation of the effect on the operating profits is shown below:
= (Offered buying price - Direct materials per unit cost - Direct labor per unit - Variable overhead per unit) ร offered units
= ($150 ย - $56 - $32 - ย $30) ร 60,180 units
=$32 per units ร 60,180 units
= $1,925,760 increase
The fixed cost per unit would not be considered in the computation part.
1. b
2. k
3. e
4. h
5. c
6. j
7. a
8. f
9. l
10. d
11. i
12. g
Explanation: