9 Comfort Cloud manufactures seats for airplanes. The company produce 100,000 has the capacity to seats per year but curently produces and sells 75,000 seats per year current preduction of seats The following information relates to Sale price per unit Variable costs per unit Marketing and administrative Manufacturing Total fixed costs: Manufacturing $750,00 $200,000 Marketing and administrative The company is considering a special sales order for 6,500 seats at a price of $325 per unit. Fixed costs would remain unchanged. What would be the net income effect of accepting this special order? A. $357,500 higher B. $487,500 lower C. $592,500 lower D. $682,500 higher Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $120,000, which includes fixed costs of $40,000 and variable costs of $80,000. The company is considering buying the part from an outside supplier for $2.50 per unit, and avoid 30% of the fixed costs. 10. If Harvey Automobiles buys the part, what will be the net income effect? A. $8,000 higher B. $8,000 lower C. $20,000 higher D. $20,000 lower Which of the following costs should NOT be considered in decision making? A. opportunity costs B. differential costs C. avoidable costs D. sunk costs