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1. The Fluffy Company manufactures slippers and sells them at $9 a pair. Variable manufacturing cost is $3.50 a pair, and allocated fixed manufacturing cost
1. The Fluffy Company manufactures slippers and sells them at $9 a pair. Variable manufacturing cost is $3.50 a pair, and allocated fixed manufacturing cost is $1.00 a pair. It has enough idle capacity available to accept a one-time-only special order of 10,000 pairs of slippers at $4.50 a pair. Fluffy will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) SO, (b) $10,000 increase, (c) $35,000 increase, or (d) $45,000 increase? Show your calculations. .... 1. The Fluffy Company manufactures slippers and sells them at $9 a pair. Variable manufacturing cost is $3.50 a pair, and allocated fixed manufacturing cost is $1.00 a pair. It has enough idle capacity available to accept a one-time-only special order of 10,000 pairs of slippers at $4.50 a pair. Fluffy will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) $0, (b) $10,000 increase, (c) $35,000 increase, or (d) $45,000 increase? Show your calculations. Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. x units in special order Effect on operating income What would the effect on operating income be if the special order could be accepted without affecting normal sales? O A. $0 OB. $10,000 increase O c. $35,000 increase OD. $45,000 increase
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