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SPI-K manufactures and sells ceramic pots. Leone Corporation has offered SPI-K $10 per pot for 2,000 pots. SPI-K's normal selling price is $12 per pot.
SPI-K manufactures and sells ceramic pots. Leone Corporation has offered SPI-K $10 per pot for 2,000 pots. SPI-K's normal selling price is $12 per pot. The total manufacturing cost per pot is $9 and consists of variable costs of $7 per vase and fixed overhead costs of $2 per vase. (NOTE: Assume excess capacity and no effect on regular sales.) Should SPI-K accept or reject the special sales order? O Accept, because operating income would increase $6,000. O Reject, because operating income would decrease $6,000. Reject, because operating income would decrease $34,000. O Accept, because operating income would increase $34,000
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