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$11 9. Hog Company makes and sells 12,000 pairs of running shoes each year. The cost of making one pair of these shoes is Direct
$11 9. Hog Company makes and sells 12,000 pairs of running shoes each year. The cost of making one pair of these shoes is Direct material Variable manufacturing overhead Direct labor Fixed manufacturing overhead The fixed overhead costs are unavoidable. The company allocates fixed overhead costs based on its annual capacity of 15,000 pairs it is able to make. An overseas company recently offered to buy 3,000 pairs of shoes at $21 per pair. Regular customers buy shoes from Hog company at $30 per pair If the special order is accepted, Hog company's profits for the year will: A. Increase by $5000 B. Decrease by $2500 C. Increase by $3000 D. Decrease by $4500
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