Question
4) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150 per unit. Fixed
4) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150 per unit. Fixed costs would remain unchanged. The variable marketing and administrative costs of $30 per unit would NOT be incurred on this special order. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?
A) Decrease by $36,000 B) Decrease by $96,000
C) Increase by $96,000 D) Increase by $36,000
4) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150 per unit. Fixed costs would remain unchanged. The variable marketing and administrative costs of $30 per unit would NOT be incurred on this special order. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?
A) Decrease by $36,000 B) Decrease by $96,000
C) Increase by $96,000 D) Increase by $36,000
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Budgeting Auditing And Evaluation Functions And Integration In Seven Governments
Authors: Andrew Gray
1st Edition
0765807246, 9780765807243
