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Inscribe, Inc. manufactures and sells pens for S7 each. Cubby Corp has offered inscribe, Inc. $4 per pen for a one-time order of 3 500
Inscribe, Inc. manufactures and sells pens for S7 each. Cubby Corp has offered inscribe, Inc. $4 per pen for a one-time order of 3 500 pers. The total manufacturing cost perpen using absorption costing, is $1 per unit and consists of variable costs of $0.75 per pen and fixed overhead costs of $0 25 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 pring order? O A decrease of $11,375 B. increase of $10,500 O Cincrease of $11,375 D. decrease of $10,500 Determinant Company is a price -taker and uses a target - pricing approach. Refer to the following information: Production volume 601,000 units per year Market price $34 per unit Desired operating income 16% of total assets Total assets $13,700,000 What is the target full product cost in total for the year? Assume all units produced are sold. O A. $2,192,000 OB. $18,242.000 O C. $96.160 OD. $13,700,000
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