The Atlanta Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $5.75 a pair, and allocated fixed manufacturing cost is $1.75 a pair. It has enough idle capacity available to accept a one-time-only special order of 25,000 pairs of slippers at $7.50 a pair. Atlanta Co. will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales $187.500 increase $143.750 increase $43.750 increase SO thing The Morrow Repair Shop repairs and services machine tools. A summary of its costs (by activity) for 2020 is as follows: a. Materials and labor for servicing machine tools $1,100,000 b. Rework costs 90,000 c. Expediting costs caused by work delays 65,000 d. Materials-handling costs 80,000 e. Materials-procurement and inspection costs 45,000 f. Preventive maintenance of equipment 55.000 g. Breakdown maintenance of equipment 75.000 Which cost is classified as value-added? Preventive maintenance of equipment Materials and labor for regular repairs Materials and Rework costs Materials, Materials handling costs. Materials procurement and inspection costs Morrow Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2020. The following cost and other data were gathered for 2020- Month Machine Hours Health Insurance Number of Employees 68 165 120 230 318 75 Maintenance Costs $4,500 $4,452 $4,600 $4,850 $5,166 $4,760 $4,910 $4,960 $5,070 $5,250 $5,271 $4.760 January February March April May June July August September October November December 92 105 89 87 Shipping Costs $25,776 $29.664 $28,674 $23,058 $21.294 $33.282 $31,428 $30.294 $25.110 $25.866 $20.124 $34.596 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8,600 $8.600 $8.600 $8.600 $8.600 460 280 340 360 420 495 510 275 Units Shipped 7.160 8,240 7,965 6.405 5.915 9.245 8.730 8,415 6.975 7.185 5.590 9.610 93 88 95 102 97 94 Which of the preceding costs is variable? health insurance cost number of employees shipping cost South Georgia Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2020 operations. Sales (6,000 microwave ovens) Cost of goods sold Store manager's salary per year Operating costs per year Advertising and promotion per year Commissions (4.1% of sales) $6,000,000 870,000 192,000 305,000 40,000 246,000 What are the estimated total costs if South Coast's store expects to sell 8,900 units next year? $2,192,400 $3,567,950 $4,104,950 $901,900