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William Company manufactures and sells watches for 540 each. Korbin Company has offered Wiliam $30 per watch for a one-time order of 5900 watches. The
William Company manufactures and sells watches for 540 each. Korbin Company has offered Wiliam $30 per watch for a one-time order of 5900 watches. The total manufacturing cost per watch is $30 per unit and consists of variable costs of 532 per watch and to overhead costs of 58 per watch. Assume that will has excess capacity and that the special price order would not adversely affect recular sales. What is the change in operating income that would result from accepting the special sales order? increase of $177,000 decrease of $177,000 increase of $47,200 decrease of $ 47,200
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