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Wooden Things manufactures and sells wooden toys for $17 each. The company has the capacity to produce 25,000 toys in a year, but currently produces
Wooden Things manufactures and sells wooden toys for $17 each. The company has the capacity to produce 25,000 toys in a year, but currently produces and sells 21,000 toys per year. The company currently incurs the following costs at its current production level of 21,000 toys: Variable manufacturing costs $74,000 Fixed manufacturing costs $94.000 Variable selling and administrative costs $80.000 Fixed selling and administrative costs $53,000 A retailer is interested in purchasing the excess capacity of 4,000 toys if it can receive a special price. This special order would not affect the company's regular sales or its cost structure. Wooden Thing's profits would increase from this special order if the special order price per toy is greater than (Round the final answer to the nearest cent.) O A. $8.00 OB. $6.16 O C. $7.33 OD. $14.33
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