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Fixed overhead applied to the segment QUESTION 6 Mary's Paint Company has current sales of 40,000 units and a current selling price $40 per unit.

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Fixed overhead applied to the segment QUESTION 6 Mary's Paint Company has current sales of 40,000 units and a current selling price $40 per unit. Production capacity is 55,000 units;Variable costs are $12 per unit; Fixed costs are $350,000. A special order for 10,000 units at a reduced sales price of $30/unit has been received. The special order will require the purchase of new equipment for $75,000 which will be disposed of after the special order has been filled. Should the order be accepted? Assume no change i unit variable costs. Yes, the incremental income will be $105,000 No, the special order brings the company too close to operate at capacity. No, because the selling price of the special order is too low and would be a loss. Yes, the incremental income will be $300,000. QUESTION 7 lick Save and Submit to save and subm

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