h4

Rojo Corporation has recelved a request for a special order of 8,000 units of product W68 for $27.20 each. Product W68's unit product cost is $18.50, determined as follows: Direct labor Is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product W68 that would increase the variable costs by $7.90 per unit and that would require an investment of $31,000 in special molds that would have no salvage value. If the special order is accepted, the company's overall net operating income is: a. 30600 b. none of answers are correct C. (4400) d. 69600 Turnover is computed by dividing average operating assets into: a. total assets b. invested capital c. sales d. none of answers are correct