Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Technologies $20 per DVD player for 10,000 DVD players. Blue Technologies' normal
Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Technologies $20 per DVD player for 10,000 DVD players. Blue Technologies' normal selling price is $31 per DVD player. The total manufacturing cost per DVD player is $14 and consists of variable costs of $12 per DVD player fixed overhead costs of $2 per DVD player. (NOTE: Assume excess capacity and no effect on regular sales.) How much are the expected increase (decrease) in revenues and expenses from the special sales order? O A. Expected increase in revenues $200,000; expected increase in expenses $120,000 0 B. Expected increase in revenues $200,000; expected increase in expenses $110,000 O C. Expected increase in revenues $310,000; expected increase in expenses $120,000 0 D. Expected increase in revenues $200,000, expected increase in expenses $20,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started