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ANSWER ALL PLEASE AND THANK YOU B8 MULTIPLE CHOICE 12-35 Stein Company makes carpets. A customer wants to place a special order for 1,000 carpets

ANSWER ALL PLEASE AND THANK YOUimage text in transcribedimage text in transcribed

B8 MULTIPLE CHOICE 12-35 Stein Company makes carpets. A customer wants to place a special order for 1,000 carpets in navy blue with the company logo woven in the middle, to be priced at $30 each. Normally, Stein would charge $60 per carpet for this type of order. Stein figures that yarn and backing will cost $12 per carpet, variable overhead (machining, electricity) is $5 per carpet, direct labor is $10 per carpet, and one setup will be required at $800 per setup. Currently, the workers needed to set up for and make the carpets are working at Stein. Their wages will be paid whether or not the special order is accepted. Stein's policy is to avoid layoffs to the extent possible. If Stein accepts the special order, by how much will operating income increase or decrease? Oa. there will be no effect on operating income Ob. $3,000 increase Oc, $3,000 decrease Od. $13,000 decrease Oe. $13,000 increase

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