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Blue Technologies manufactures and sells tablets. Great Products Company has offered Blue Technologies $21 per tablet for 10,000 tablets. Blue Technologies' normal selling price is
Blue Technologies manufactures and sells tablets. Great Products Company has offered Blue Technologies $21 per tablet for 10,000 tablets. Blue Technologies' normal selling price is $32 per tablet. The total manufacturing cost per tablet is $16 and consists of variable costs of $11 per tablet and fixed overhead costs of $5 per tablet. (NOTE: Assume excess capacity and no effect on regular sales.) Should Blue Technologies accept or reject the special sales order? O A. Accept, because operating income would increase $100,000. OB. Reject, because operating income would decrease $210,000. OC. Reject, because operating income would decrease $100,000. OD. Accept, because operating income would increase $320,000.
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