QUESTION 26 Which of the following is true if a company can accept a special order without affecting its regular sales and is within plant capacity? A. Net income will decrease if the special sales price per unit exceeds the unit variable costs. B. Additional fixed costs will probably be incurred. OC. Net income will not be affected. D. Net income will increase if the special sales price per unit exceeds the unit variable costs. QUESTION 27 Weatherspoon Company has a product with a selling price per unit of $500, the unit variable cost is $200, and the total monthly fixed costs are $400,000. How much is Weatherspoon's contribution margin ratio? A. 80% B. 52% C. 60% D. 4896 Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $35.000 560,000 Accumulated Depreciation 20,000 -0. Remaining useful life 10 years Useful life -0- 10 years Annual operating costs $25.000 $18,000 If the old machine is replaced, it can be sold for $4,200. The net advantage of replacing the old machine is A. $70,000 B. $14,200 C. $10,000 D. 55,800