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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 Assume no beginning inventory $50 $162,000 $187,000 $123,000 $71,000 $65,000 $12,000 23,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1,400 units at a sale price of $47 per product? The 1,400 units would not require am variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) OA. Decrease by $28,728 OB. Increase by $28,728 OC. Decrease by $37,072 D. Increase by $37.072
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