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Total Cost Variable manufactunng opal ....................... $125,000 Fixed manufacturing cost $45,000 Variable selling and administrative cost $13,000 Fixed selling and administrative cost ........... $21000 |[Eliminnett
Total Cost Variable manufactunng opal ....................... $125,000 Fixed manufacturing cost $45,000 Variable selling and administrative cost $13,000 Fixed selling and administrative cost ........... $21000 |[Eliminnett Barbecue Sauce Corporation manufactures a specialty barbecue sauce. lGaminnett has the capacity to manufacture and sell 10,000 cases of sauce each year but is currently manufacturing and selling only 9,000. The costs shown relate to annual operations at I59,000 cases. lGimrinnett normally sells its sauce for $30 per case. A local school district is interested in purchasing Gwinnett's excess capacity of 1,000 cases of sauce but only if they can get the sauce for $15 per case. This special order wouldn't affect regular sales or total fixed costs or variable costs per unit. If this special order is accepted, what will happen to Gwinnett's profits for the year? , L/ A) Decrease by $4.000 Li B) Decrease by $1,000 '\\/ Ci Increase by $600 \"w "xf D} Decrease by $6,600
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