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The Woody Company manufactures slippers and sells them at $10 a pair. Variable pair, and allocated fixed manufacturing cost is $1.50 a pair. It has
The Woody Company manufactures slippers and sells them at $10 a pair. Variable pair, and allocated fixed manufacturing cost is $1.50 a pair. It has enough idle capacity available to accept a one-time-only special order of 20,000 pairs of slippers at $6 a pair. Woody 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? Increase by SZERO (Income stays the same.) Increase by $80,000 Increase by $110,000 Increase by $30,000 Increase by $70,000 The Woody Company manufactures slippers and sells them at $10 a pair. Variable manufacturing cost is $4.50 a pair, and allocated fixed manufacturing cost is $1.50 a pair. It has enough idle capacity available to accept a one-time-only special order of 20,000 pairs of slippers at $6 a pair. Woody 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? Increase by SZERO (Income stays the same.) Increase by $80,000 Increase by $110,000 Increase by $30,000 Increase by $70,000
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