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Swisser Vase Company manufactures and sells vases. Great Products Company has offered Swisser Vase $19 per vase for 5,000 vases. Swisser Vase's normal selling price
Swisser Vase Company manufactures and sells vases. Great Products Company has offered Swisser Vase $19 per vase for 5,000 vases. Swisser Vase's normal selling price is $28 per vase. The total manufacturing cost per vase is $24 and consists of variable costs of $20 per vase and fixed overhead costs of $4 per vase. (NOTE: Assume excess capacity and no effect on regular sales.) How much are the expected increase (decrease) in revenues and expenses from the special sales order? A. Expected increase (decrease) in revenues $90,000; expected increase (decrease) in expenses $90,000 B. Expected increase (decrease) in revenues $80,000; expected increase (decrease) in expenses $70,000 C. Expected increase (decrease) in revenues $95,000; expected increase (decrease) in expenses $100,000 D. Expected increase (decrease) in revenues $95,000; expected increase (decrease) in expenses $70,000
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