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ABC Company manufactures coffee tables. For the first eight months of 2020, the company reported the following operating results while operating at 80% of plant

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ABC Company manufactures coffee tables. For the first eight months of 2020, the company reported the following operating results while operating at 80% of plant capacity Sales (250,000 units) $85,000,000 Cost of goods sold 57.000.000 Gross profit 28,000,000 Operating expenses 8.000.000 Net income $20.000.000 An analysis of costs and expenses reveals that variable cost of goods sold is 5180 per unit and variable operating expenses are $20 per unit In September, ABC Company receives a special order for 45,000 machines at $200 each from a major coffee shop franchise. Acceptance of the order would result in $22.500 of shipping costs but no increase in fixed expenses Should ABC Company accept the special order? Select one a. No, this order would decrease operating income by $45,500 b. Yes, this order would increase operating income by $32,500 O c No, this order would decrease operating income by S132 500 O d. No, this order would decrease operating income by 522 500 1:21 FNG

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