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Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00 per pen for a one-time order of 3,500 pens.
Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen is $1.00 per unit and consists of variable costs of $0.80 per pen and fixed overhead costs of $0.20 per pen. Assume that Inscribe, Inc. has excess capacity and that the special pricing order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special pricing order? O A. increase of $11,200 OB. decrease of $11,200 OC. decrease of $7,000 OD. increase of $7,000
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