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Answers 19. The following information relates to current production of outdoor chai lounges at Backyard Posht Variable manufacturing coeperunt 510200 Total fed manufacturing costs 5525.000

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Answers 19. The following information relates to current production of outdoor chai lounges at Backyard Posht Variable manufacturing coeperunt 510200 Total fed manufacturing costs 5525.000 Variable marketing and administer unit 00 Total timed marketing and administrative cool 550.000 The regular selling price per chaise lounge is $300.00. The company is analysing the opportunity to accept a special sales order for 1.200 chaise Lounges at a price of 0225.00 per unit, Fixed costs would remain unchanged The company has the capacity to produce 15,000 chaise lounges per year, but is currently producing and selling 10.000 chaise lounges per year. Regular sales will not be affected by the special order. What is the impact on operating income it the company accepts the special order

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