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Venus Corporation provided the following information regarding its single product. (Click on the icon to view the information.) What would be the effect on Venus
Venus Corporation provided the following information regarding its single product. (Click on the icon to view the information.) What would be the effect on Venus Corporation's operating income of accepting a special order for 2.000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $7,000 are incurred? The company has excess capacity and regular sales will not be affected by this special order Information h O A. Decrease by $5,000 O B. Increase by $5,000 O C. Increase by $2,000 O D. Decrease by $2.000 Direct materials used Direct labour incurred Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative costs Fixed selling and administrative costs $240.000 $420,000 $160.000 $100.000 $60.000 $20.000 The regular selling price for the product is $75. The annual quantity of units produced and sold is 20.000 units (the costs above relate to the 20.000 units production level). There was no beginning inventory Print Done 0 Time Remaining:02 10:46
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