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The regular selling price per wicker sota is $250. The company is anabying the opportunity to accopt a special sales order for 1,000 wicker sofa

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The regular selling price per wicker sota is $250. The company is anabying the opportunity to accopt a special sales order for 1,000 wicker sofa at a price of $200 per unit. Fued costs would unchanged. The company has the capacity to produce 95,000 wicker sofas per year, but is currently producing and selling 13,000 wicker sofas per year. The 1,000 units would not require any variable markoting and administrative expenses. Regular sales will not be affected by the special order, If the company were to acoept this special order, how would operating income be atlec A. Increase by $68,000 B. Decrease by 598,000 C. Increase by $98,000 D. Docrease by 968,000 Management is considering whether the Eastern Dvision should be discontenued since it incurred an operating loss last year. Alocated common fixed costs would continue for Worldwide Corporation whether the division is discontinued or not If the Eastern Division had been discontinued at the beginning of last year, what would the fotal operating income (loss) for Worldwide Corporabon have been foe the year? A. $65,000 B. $20,000 C. $25,000 D. $110,000

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