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Branford Inc. reported the following results from the sale of 28,000 units of SR-90: 4 00:02:42 Sales Variable manufacturing costs Fixed manufacturing costs Variable selling
Branford Inc. reported the following results from the sale of 28,000 units of SR-90: 4 00:02:42 Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs Fixed administrative costs $550,000 308,000 140,000 53,100 36,100 Elkhorn Company has offered to purchase 3,000 SR-90s at $15 each Branford has available capacity, and the president is in favor of accepting the order. The president feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost of production is $16. Which of the following correctly notes the change in income if the special order is accepted? Multiple Choice $3,000 increase None of the answers is correct. O $3,000 decrease. $12,000 increase. $12,000 decrease
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