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can someone please show me how to work out this problem, thank you in advance! Viking Sail Makers manufactures sails for sailboats. The company has
can someone please show me how to work out this problem, thank you in advance!
Viking Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 25,000 sails per year. The following information relates to current production: If a special pricing order is accepted for 5500 sails at a sales price of $160 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.) Step by Step Solution
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