Question 3 It costs Vaughn Manufacturing $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3500 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Vaughn has sufficient unused capacity to produce the 3500 scales. If the special order is accepted, what will be the effect on net income? O $7000 decrease O $7000 increase O $10500 decrease O $52500 increase Question 4 Coronado Industries manufactures a product with a unit variable cost of $100 and a unit sales price of $181. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $145 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: O Income would increase by $3000. O Income would increase by $45000. 0 0 Income would decrease by $3000. Income would increase by $145000