click to select = increase or decrease

Pietarsaari Oy, a Finnish company, produces cross-country ski poles that it sells for 33 a pair. The Finnish unit of currency, the euro, is denoted by .) Operating at capacity, the company can produce 56,000 pairs of ski poles a year. Costs associated with this level of production and sales are given below: Per Pair 9 Total Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense 504,000 168,000 56,000 224,000 56,000 168,000 4 Total cost 21 1,176,000 equired: 1. The Finnish army would like to make a one-time-only purchase of 9,900 pairs of ski poles for its mountain troops. The army would pay a fixed fee of 5 per pair, and in addition it would reimburse the Pietarsaari Oy company for its unit manufacturing costs (both fixed and variable). Due to a recession the company would otherwise produce and sell only 46,100 pairs of ski poles this year. (Total fixed manufacturing overhead cost would be the same whether 46,100 pairs or 56,000 pairs of ski poles were produced.) The company would not incur its usual variable selling expenses with this special order If the Pietarsaari Oy company accepts the army's offer, by how much would net operating income increase or decrease from what it would be if only 46,100 pairs of ski poles were produced and solod during the year? (Input the amount as a positive value. Omit the "" sign in your response.) (Click to select)in net operating income 2. Assume the same situation as described in (1) above, except that the company is already operating at capacity and could sell 56,000 pairs of ski poles through regular channels. Thus, accepting the army's offer would require giving up sales of 9,900 pairs at the normal price of 33 a pair. If the army's offer is accepted, by how much will net operating income increase or decrease from what it would be if the 9,900 pairs were sold through regular channels? (Input the amount as a positive value. Omit the "" sign in your response.) (Click to select) in net operating income