How much income will teton make on the special order, Managerial Accounting

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How much income will teton make on the special order

Problem

Teton Tents makes backpacking tents. It has the capacity to produce 10,000 tents per year and currently is producing and selling 7,000 tents. Normal selling price for a tent is $470. Unit-level costs are $100 for direct materials, $200 for direct labor. and $25 for other manufacturing costs. Facility-level costs of $80 are allocated to each tent. Teton has received a special order for 1,500 tents at $340 each.

Task

How much income will Teton make on the special order?

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Managerial Accounting: How much income will teton make on the special order

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