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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
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 550.00 5161,000 $185,000 $120,000 $71,000 $65,000 $12,000 22,000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1,200 units at a sale price of 549 per product? The 1,200 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) O A. Decrease by $25,416 O B. Decrease by $33,384 OC. Increase by $33,384 OD. Increase by 525,416
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