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I need help answering this question The following information relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per unit
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The following information relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per unit Total fixed manufacturing costs Variable marketing and administrative costs per unit Total fixed marketing and administrative costs $107 $565,000 $34 $250,000 The regular selling price per chaise lounge is $300. The company is analyzing the opportunity to accept a special sales order for 1,100 chaise lounges at a price of $225 per unit. Fixed costs would remain unchanged. The company has the capacity to produce 55,000 chaise lounges per year, but is currently producing and selling 13,000 chaise lounges per year. Regular sales will not be affected by the special order. What is the impact on operating income if the company accepts the special order? O A. Increase by $247,500 O B. Decrease by $247,500 O C. Decrease by $92,400 OD. Increase by $92,400Step by Step Solution
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