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Arkansas Corporation provided the following information regarding its only product--tables: Selling price per unit $65 Direct materials used 150,000 Direct labor 225,000 Variable factory overhead
Arkansas Corporation provided the following information regarding its only product--tables: Selling price per unit $65 Direct materials used 150,000 Direct labor 225,000 Variable factory overhead 140,000 Variable selling and administrative expenses 60,000 Fixed factory overhead 370,000 Fixed selling and administrative expenses 30,000 Units produced and sold 20,000 Assuming there is excess capacity, the effect of accepting a special order for 1,000 units at a price of $40.00 per table is that net income would _____. A. increase by $40,000 B. increase by $11,250 C. decrease by $28,750 D. decrease by $10,000
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