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6. Ferris Corporation has the following budgeted operating results for 2018: Revenues (10,000 units @ $60) Variable costs: $600,000 Manufacturing $270,000 90,000 360,000 $240,000 Selling
6. Ferris Corporation has the following budgeted operating results for 2018: Revenues (10,000 units @ $60) Variable costs: $600,000 Manufacturing $270,000 90,000 360,000 $240,000 Selling Contribution margin Fixed costs: $80,000 Manufacturing Selling 50,000 130,000 $110,000 Operating income A foreign wholesaler wants to buy 1,500 units at a price of $35 per unit. All fixed costs would rem relevant range (up to capacity). There would be no variable selling costs on the special order units. Corporation has a capacity to produce 12,000 units per year. Required: a. Redo the income statement assuming that Ferris Corporation accepts the special order. b. What is the change in operating income? c. Should Ferris Corporation accepts the special order
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