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Cecil Incorporated provided the following information regarding its only product: Assuming there is excess capacity, what would be the effect on operating income of accepting
Cecil Incorporated provided the following information regarding its only product: Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $46 per product? The 1,000 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent) A. Increase by $22,250 B. Increase by $23,750 C. Decrease by $22,250 D. Decrease by $23,750
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