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Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling
Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold $50.00 $16,500 $186,000 $125,000 $70,000 $65.000 $12,000 21,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3,500 units at a sale price of $41 per product assuming additional fixed manufacturing overhead costs of $5,200 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) .. O A. Increase by $77,245 OB. Decrease by $72,045 OC. Increase by $143,500 OD. Increase by $72,045
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