Question 2 requirementShould the special order be accepted? Compute the amount by which the operating income would change if the order were accepted. What is the minimum the pen should be sold to break even in special order?

Best Industries manufactures coffee mugs. When 28,000 mugs are produced, the costs per mug are: Direct materials $0.60 Direct manufacturing labor 3.00 Variable manufacturing overhead 1.20 Fixed manufacturing overhead 1.90 Variable selling 0.98 Fixed selling 1.40 Total $9.08 The mugs normally sell for $16 each. Best Industries has received a special order for 4,000 mugs at $8 per mug. Best Industries has excess capacity. Required: Should the special order be accepted? Compute the amount by which the operating income would change if the order were accepted. Conquer Corporation manufactures pens. When 100,000 pens are produced, the costs per pen are: Direct materials $0.50 Direct manufacturing labor 0.25 Variable manufacturing overhead 0.30 Variable selling 0.10 Fixed manufacturing overhead Fixed selling 0.20 Total 0.25 $1.50 he pens normally sell for $4 each. Best Industries has received a special order for 25,000 pens at $1 p n. Best Industries has excess capacity. quired: ould the special order be accepted? Compute the amount by w