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I am stuck on these two problems. Use the following information for the next two questions: Flying Pigs produces meat smokers for commercial sales. They

I am stuck on these two problems.

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Use the following information for the next two questions: Flying Pigs produces meat smokers for commercial sales. They are an old business in an established plant with capacity to produce 75,000 meat smokers annually. Current production and sales are 55,000 meat smokers annually. Their regular wholesale price to dealers is $830 per meat smoker. The cost per meat smoker is $745.00 which consists of the following per unit: Direct materials $335.00 Direct labor $200.00 Variable overhead $65.00 Fixed overhead $145.00 1. A department chain has approached Flying Pigs about purchasing 2,000 meat smokers annually; however, they only wish to pay $685 per meat smoker. What effect would accepting the order have on the company's net operating income? A. NOI would increase by $1,370,000 B. NOI would increase by $300,000 C. NOI would increase by $120,000 D. NOI would increase by $170,000 Another department chain has approached Flying Pigs about purchasing 24,000 meat smokers annually; however, they only wish to pay $650 per meat smoker. What effect would accepting the order have on the company's net operating income? A. NOI would increase by $280,000 B. NOI would decrease by $920,000 C. NOI would increase by $1,000,000 D. NOI would increase by $80,000

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