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i need help wifh this question Each television regularly sells for $560.00. A special order has been received from a large chain of department stores
i need help wifh this question Each television regularly sells for $560.00. A special order has been received from a large chain of department stores for 11,000 televisions at $56.00 below the regular selling price. If this special order is accepted, the direct material cost will be $22.00 greater per television than for regular sales. The variable selling expenses listed above (i.e. $116.00 ) include a $34.80 shipping cost. The department store chain will pay for shipping costs for the special order, so ACME can avoid the shipping cost on this special order. This order would have no effect on ACME's regular sales, and the order could be filled using ACME's existing capacity without affecting ACME's regular sales. No additional fixed costs would be necessary. Required: If ACME accepts the special order, how much will operating income CHANGE? A) $888,800 B) $506,000 C) $914,300 D) $316,800 E) $(321,200) F) $250,800 G) $(323,280)
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