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porated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and
porated provided the following information regarding its only product: 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 $16,400 $188,000 $123,000 $74,000 $65,000 $12,000 21,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for O A. Decrease by $66,737 B. Increase by $72,237 C. Increase by $135,300 OD. Increase by $66,737 Sale price per unit $50.00 Direct materials used $16,400 Direct labor incurred $188,000 Variable manufacturing overhead $123,000 Variable selling and administrative expenses $74,000 Fixed manufacturing overhead $65,000 Fixed selling and administrative expenses $12,000 Units produced and sold 21,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3,300 units at a sale price of $41 per product assuming additional fixed manufacturing overhead costs of $5,500 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) O A. Decrease by $66,737 B. Increase by $72,237 O c. Increase by $135,300 D. Increase by $66,737 Click to select your answer. SG
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