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3 20 pts Visionary Game Company sells 600,000 units per year of a particular video game cartridge at $12 each. The current unit cost of
3 20 pts Visionary Game Company sells 600,000 units per year of a particular video game cartridge at $12 each. The current unit cost of the game is broken down as follows: Direct Materials $3.00 Direct Labour $1.00 Variable Factory Overhead $3.50 Fixed Factory Overhead $1.50 Total $9.00 At the beginning of the current year, Visionary received a special order for 10,000 of these game cartridges per month, for one year only, at a sales price of $8 per unit. To fill the order, Visionary will have to rent additional assembly space at a cost of $12,000 ($1,000 per month). Compute the estimated increase or decrease in annual operating income that will result from accepting this special order. 10 HTML Editor
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