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The following information relates to current production of outdoor wicker sofas at Backyard Posh: Variable manufacturing costs per unit Total fixed manufacturing costs Variable marketing
The following information relates to current production of outdoor wicker sofas at Backyard Posh: Variable manufacturing costs per unit Total fixed manufacturing costs Variable marketing and administrative costs per unit Total fixed marketing and administrative costs $105 $525,000 $30 $290,000 The regular selling price per wicker sofa is $300. The company is analyzing the opportunity to accept a special sales orde produce 55,000 wicker sofas per year, but is currently producing and selling 11,000 wicker sofas per year. Regular sales affected? A. Decrease by $52,500 B. Increase by $52,500 C. Increase by $28,500 D. Decrease by $28,500 kyard Posh: $105 525,000 $30 290,000 rtunity to accept a special sales order for 500 wicker sofas at a price of $240 per unit. Fixed costs would increase by $24,000. The company has the capacity to wicker sofas per year. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be
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