Question
23. If a special sales order is accepted for 3,000 sails at a price of $75 per unit and no variable marketing and administrative
23. If a special sales order is accepted for 3,000 sails at a price of $75 per unit and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Idle Capacity) A. Decrease by $5,000 . Decrease by S15,000 C. Increase by S35,000 D. Increase by S60,000 24. If a special sales order is accepted for 2,000 sails at a price of $95 per unit, and fixed costs increase by S10,000, how would operating income be affected? (NOTE: Idle Capacity) A. Decrease by $34,000 B. Decrease by $44,000 C. Increase by $20,000 D. Increase by $25,000
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
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