1. The Jersey Company manufactures slippers and sells them at $7 a pair. Variable manufacturing cost is $3.50 a pair, and allocated fixed manufacturing cost is $1.55 a pair. It has enough idle capacity available to accept a one-time-only special order of 5,000 pairs of slippers at $5.05 a pair. Jersey 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) $7,750 increase, (c) $17,500 increase, or (d) $25,250 increase? Show your calculations. 2. The Albany Company manufactures Part No. 498 for use in its production line. The manufacturing cost per unit for 20,000 units of Part No. 498 is as follows: (Click to see the manufacturing cost per unit.) Read part 2's requirement. 1. The Jersey Company manufactures slippers and sells them at $7 a pair. Variable manufacturing cost is $3.50 a pair, and allocated fixed manufacturing cost is $1.55 a pair. It has enough idle capacity available to accept a one-time-only special order of 5,000 pairs of slippers at $5.05 a pair. Jersey 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) $7,750 increase, (c) $17,500 increase, or (d) $25,250 increase? Show your calculations. Beqin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Ills them at $7 a pair. Variable manufacturing cost is $3.50 a pai ial order of 5,000 pairs of slippers at $5.05 a pair. Jersey will not could be accepted without affecting normal sales: (a) $0, (b) $7, Jr use in its production line. The manufacturing cost per unit for Ills them at $7 a pair. Variable manufacturing cost is $3.50 a pai ial order of 5,000 pairs of slippers at $5.05 a pair. Jersey will not could be accepted without affecting normal sales: (a) $0, (b) $7, operating income and then enter in the supporting calculations. Data table The Pane Company has offered to sell 20,000 units of Part No. 498 to Albany for $63 per unit. Albany will make the decision to buy the part from Pane if there is an overall savings of at least $50,000 for Albany. If Albany accepts Pane's offer, $5 per unit of the fixed overhead allocated would be eliminated. Furthermore, Albany has determined that the released facilities could be used to save relevant costs in the manufacture of Part No. 575 . Requirement For Albany to achieve an overall savings of $50,000, the amount of relevant costs that would have to be saved by using the released facilities in the manufacture of Part No. 575 would be which of the following: (a) $80,000, (b) $250,000, (c) $70,000 or (d) $280,000 ? Show your calculations. What other factors might Albany consider before outsourcing to Pane