1 Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $160,000 Direct labor incurred $189,000 Variable manufacturing overhead $123,000 Variable selling and administrative expenses $73,000 Fixed manufacturing overhead $65,000 Fixed selling and administrative expenses $12,000 Units produced and sold 24,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1,400 units at a sale price of $48 per product? The 1,400 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations the nearest cent.) O A. Decrease by $27,538 OB. Increase by $39,662 OC. Decrease by $39,662 OD. Increase by $27,538 2 A graph of a flexible budget formula reflects fixed costs of $43,000 per month and total costs of $67,000 at a volume of 3,000 units. Assuming the relevant range is 1,000 to 20,000 units, the graph would reflect total monthly costs at 14,000 units of what dollar amount? O A. $112.000 OB. $222,000 O c. $155,000 OD. $67,000 3 Using account analysis, what type of cost is the price of gasoline when your car gets 30 miles per gallon and each gallon costs $3.65? O A. Variable OB. Mixed OC. Fixed OD. Step Common fixed costs that are allocated between departments are generally 4 O A. relevant to the decision of whether to discontinue the department. OB. irrelevant to the decision of whether to discontinue the department. O C. direct fixed costs of the department. OD. direct fixed costs of other departments