=+8-18 K Multiple choice (CPA) OBJECTIVE 2 Choose the best answer.

1 Woody Ltd manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $4.50 a pair and allocated fixed manufacturing cost is $1.50 a pair. It has enough idle capacity available to accept a one-time-only special order of 20000 pairs of slippers at $6 a pair. Woody Ltd will not incur any marketing costs as a result of the special order. What would the effect on operating profit be if the special order could be accepted without affecting normal sales?

(a) $0,

(b) $30000 increase,

(c) $90000 increase or

(d) $120000 increase. Show your calculations.