Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the information below to answer the following question(s) The following information relates to current production of bench seats for boats Aquamarine Manufacturing: Variable manufacturing
Use the information below to answer the following question(s) The following information relates to current production of bench seats for boats Aquamarine Manufacturing: Variable manufacturing costs per unit Total fixed manufacturing costs Variable marketing and administrative costs per unit Total fixed marketing and administrative costs The regular selling price per bench seat is $200. The company has the capacity to produce 15,000 bench seals per year, but is currently producing and selling 10,000 bench seats per year. $102 $525,000 $30 $250,000 Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,500 bench seats at a price of $155 per unit. Fixed costs would increase by $10,000. Regular sales will not be affected by the special order. If the company were accept this special order, how would operating income be affected? O A. Decrease by $47,500 B. Increase by $47,500 OC. Increase by 557,500 D. Decrease by $57 500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started