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K Oh Snap, LLC is a manufacturer of a single type of camera. The company's contribution margin income statement for its most recent period
K Oh Snap, LLC is a manufacturer of a single type of camera. The company's contribution margin income statement for its most recent period of operations is as follows: sales revenue $12,000 (variable costs) (5.200) contribution margin $6,800 (fixed costs) (5.400) operating income $1,400 During the period, 400 cameras, which is 80% of its full capacity, were produced and sold. Included in the variable costs are variable manufacturing costs of $4,000 and variable operating expenses of $1,200. Fixed costs consist of $3,150 of fixed manufacturing overhead costs and $2,250 of fixed operating expenses. Oh Snap received a special order from Eliot Porter, Inc. for 115 cameras at a special sales price of $15. The unit variable manufacturing cost for the special order will be the same as the unit variable manufacturing costs for regular sales. No variable operating expenses will be incurred on the special order. Acceptance of the special order will have no impact on total fixed costs. What will be the company's new operating income if the special order is accepted? A. $575 OB. $1,545 OC. $1,890 OD. $1,720 OE. $320
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