A Co recently received an order from a potential customer outside the Co. normal geographic service region for a price of $9,000. The size of the proposed job is 22,000 square feet. The Co. normal service costs are as follows:
Unit level materials $0.18 per square foot
Unit Level Labor $0.25 per square foot
Unit Level variable overhead $0.08 per square foot
Facility level overhead Allocated at $0.10 per square foot
If the Co. accepts this offer:
a) will the Co $4,420 on the job;
b) Lose 2,220 on the job
c) lose $460 on the job
d) Earn $5,040.
Not sure how to set up the formula to get the correct answer.