31 Variable manufacturing costs per unit $104 Totalted manufacturing costs $525,000 Variable marketing and ministrive costs per unit Total and marketing and administrative costs $270,000 The regular walling price per chaise lounge is $40. The company is analyzing the opportunity to accept a special sales order for 300 chaise lounges at a price of $220 per unit. Fixed costs would increase by $22.000. The company has the capacity to produce 35,000 chaiselounges per year, but is currently producing and selling 13,000 chaise lounges per year. Regular sales will not be affected by the special order. W the company were to accept this special order, how would operating income be affected? O A Increase by $25,500 OB. Increase by 13.500 OC. Decrease by $25.500 OD. Decrease by $3,500 All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Total Cat Food Dog Food Sales revenue $425,000 $340,000 $85,000 Variable expenses $63,000 $23,000 $40,000 Contribution margin $362,000 $317,000 $45,000 Fixed expenses $99.000 $47.000 $52,000 Operating income (los) $263,000 $270,000 $17,000) A. Decrease in total operating income of $481,000 B. Increase in total operating income of $7,000 O c. Decrease in total operating income of $45,000 D. Increase in total operating income of $218,000 All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Total Cat Food Dog Food Sales revenue $425,000 $340,000 $85,000 Variable expenses $65,000 $25,000 $40,000 Contribution margin $360,000 $315.000 $45,000 Fixed expenses $98.000 $46,000 $52,000 Operating income (105) $262.000 $269,000 S(7.000) A. Increase $20,000 OB. Increase $242,000 OC. Decrease $20,000 OD. Increase $504,000 Sales price Variable costs Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available: Futons Recliners $530.00 $710.00 $400.00 $415.00 The company can manufacture either 4 futons per machine hour or 2 recliner(s) per machine hour. The company's production capacity is 13,800 machine hours per month To maximize profits, what product and how many units should the company produce in a month? O A 55,200 futons O B. 27,600 furons and recliners OC 55 200 futons and 27.500 recliners OD 27.600 recliners !! Part P40 is a part used in the production of air conditioners at Jackson Corporation. The following costs and data relate to the production of Part P40: Number of parts produced annually 24,000 Fixed costs $43,000 Variable 1 $71,000 Total cost to produce $114,000 Jackson Corporation can purchase the part from an outside supplier for 54.53 per unit. If they purchase from the outside supplier, 50% of the feed costs would be avoided. It Jackson Corporation makes the how much will cerating income be? O A516220 greater than it the company bought the part OB. $21.500 greater than the compary bought the part OC 550,220 greater than the company bought the part OD $130,720 greater than it the company bought the part