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Please help the second part! Donald would like to order special holiday ornaments for his staff of 880 employees. He just found the perfect item:
Please help the second part!
Donald would like to order special holiday ornaments for his staff of 880 employees. He just found the perfect item: clear glass globes with a unique design and material inside. The only issue is that the globes come from a small manufacturer with limited capacity. The manufacturer told Donald that it could only produce 440 of these ornaments for him without affecting its regular sales. Normally, these ornaments sell for $23.00 each and cost the company $16.00 to make (Donald does not know the company's cost structure). Included in the $16.00 cost per unit is $2.50 of fixed-MOH and $1.40 of variable-MOH. (a) Your answer is correct. How much will operating income change for the small manufacturer if it produces 440 ornaments for Donald and sells them at a special price of $16.00 per unit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 5,125.) Operating income by $ How much will operating income change for the small manufacturer if it meets Donald's 880-ornament special order, at a selling price of $16.00 per unit, while reducing its regular sales by 440 units? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answer to 0 decimal places, e.g. 5,125.) Operating income by $Step by Step Solution
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