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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 57 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? Accept because operating income would increase 56,000. Reject because operating income would decrease 56,000. Reject, because operating income would decrease 534,000. Accept because operating income would increase 534,000
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