Multiple Choice Question 53 It costs Vaughn Manufacturing $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2600 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Vaughn has sufficient unused capacity to produce the 2600 scales. If the special order is accepted, what will be the effect on net income? $5200 increase O $5200 decrease O $39000 increase O $7800 decrease Multiple Choice Question 77 Coronado Industries incurs the following costs to produce 10500 units of a subcomponent: Direct materials $8820 Direct labor 11865 Variable overhead 13230 Fixed overhead 16200 An outside supplier has offered to sell Coronado the subcomponent for $2.85 a unit. If Coronado could avoid $3000 of fixed overhead by accepting the offer, net income would increase (decrease) by O $990. O $(6045). O $(4020). $6990