Lanta Restaurant compares monthly operating results with a static budget prepared at the beginning of the year. When actual sales are less than budget would the restaurant usually report favourable variances on Variable food costs and fixed supervisory salaries? A B C Food Costs Yes Yes No NO Supervisory Salaries Yes INo Yes No D Multiple Choice Choice A Choice C. Choice D Choice B Molar Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to produce 50,000 tools. Its product sells for $30 per tool and the variable costs incurred are as follows on a per tool basis: $8 Direct materials Direct labour Sales commission $4 $2 A customer has proposed a special order to purchase 10,000 tools at a special price of $20 per tool. If Molar accepts the order, the company will not have to pay its sales personnel their sales commissions. However, the company will incur a shipping cost of $3 per tool. If Molar accepts the special order, how would operating income be affected? Multiple Choice decrease by $120,000 Increase by $46,000 decrease by $30,000 Increase by $80,000 increase by $50,000