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Venus Corporation provided the following information regarding its single product: The regular selling price for the product is $75. The annual quantity of units produced
Venus Corporation provided the following information regarding its single product: The regular selling price for the product is $75. The annual quantity of units produced and sold is 25,000 units (the costs above relate to the 25,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 2,000 units at a sale price of $40 per product? The special order units would not require any variable selling and administrative expenses. A. Decrease by $11,500 B. Decrease by $12,000 C. Increase by $14,400 D. Increase by $16,000 Green Valley golf course is planning for the coming season. Investors would like to earn a 12% return on the company's $40 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be $18,000,000 for the golfing season. About 400,000 golfers are expected each year. Variable costs are about $8 per golfer. The Green Valley golf course has a favorable reputation in the area and therefore, has some
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