Question text

Special Order

Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,500 pairs of boots at a price of $55.00 per pair. Popes normal selling price is $65.00 per pair of sneakers. Variable manufacturing costs are $35.00 per pair and fixed manufacturing costs are $12.00 a pair. Popes variable selling expense for its normal line of sneakers is $1.00 per pair.

What would the effect on Popes operating income be if the company accepted the special order?

Pope's operating income would Answerdecreaseincrease

Correct Mark 1.00 out of 1.00

by $Answer

Incorrect Mark 0.00 out of 1.00

if the order was accepted.