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please help will upvote Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall would
please help will upvote
Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping mall would like to purchase 220 extra - large white trees. Faux Trees Company is currently producing and selling 20,000 trees; the company has the excess capacity to handle this special crder. The shopping mall has offered to pay $130 for each tree. An accountant at Faux Trees Company provides an estimate of the unit product cost as follows: This special order would require an investment of $8,000 for the molds required for the extra-large trees. Those molda would have no other purpose and would have no salvage value. The special order trees would also have an additional variable cest of $9.81 per unit associated with having a white tree. This special ander would not have any effect on the company's other sales. If the special order is accepted, the company's operating income would increase (decrease) by (Round ithe final answer to the nearest dollar.) A. $5,545 increase B. $13,545 decrease. C. $13,545 increase. D. $11,864 decrease Step by Step Solution
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