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Martin Incorporated provided the following information regarding its only product EEB (Click the icon to view the data.) Assuming there is excess capacity, what would
Martin Incorporated provided the following information regarding its only product EEB (Click the icon to view the data.) Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1,200 units at a sale price of $49 per product? The 1,200 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) O A. Increase by $34,332 O B. Increase by $24,468 i Data Table C. Decrease by $24,468 O D. Decrease by S34,332 Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold $50.00 $161,000 $185,000 $123,000 $74,000 $65,000 $12,000 23,000 Assume no beginning inventory
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