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************************************************************************ Glow Sticks Corporation manufactures and sells glow-in-the-dark necklaces for $10 each. The company has the capacity to produce 25,000 necklaces in a year, but
************************************************************************ Glow Sticks Corporation manufactures and sells glow-in-the-dark necklaces for $10 each. The company has the capacity to produce 25,000 necklaces in a year, but is currently producing and selling 10,000 necklaces per year. The company currently is incurring the following costs at its current production level of 10,000 necklaces: Variable manufacturing costs Fixed manufacturing costs Unavoidable Variable selling and administrative costs Fixed selling and administrative costs $ $ $ $ 40,000 90,000 75,000 50,000 An amusement park is interested in purchasing the excess capacity of 15,000 necklaces if it can receive a special price. This special order would not affect Glow Sticks Corporation's regular sales or its cost structure. Glow Sticks Corporation's profits would increase from this special order if the special order price per necklace is greater than: A. $ 15.40. B. $ 16.75. C.S 11.50 D. $ 15.75. E. Other kkkkkkkkkkkkkkkkk kkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk Venus Corporation provided the following information regarding its single product: Direct materials used Direct labor incurred Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 240,000 $ 420,000 $ 160,000 $ 100,000 $ 60,000 $ 20,000 The regular selling price for the product is $75. The annual quantity of units produced and sold is 20,000 units (the costs above relate to the 20,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 2,000 units at a sale price of $50 per product assuming additional fixed manufacturing overhead costs of $7,000 are incurred
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