Question
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
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 1,000 pairs of boots at a price of $50.00 per pair. Popes normal selling price is $65.00 per pair of boots. 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 boots 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 increase by $Answer if the order was accepted.
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