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Woodson Corporation provided the following information regarding its only product. Assuming there is excess capacity, what would be the effect on operating income on a

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Woodson Corporation provided the following information regarding its only product. Assuming there is excess capacity, what would be the effect on operating income on a per unit basis of accepting a special order for 800 units at a sale price of $55 per product? The 800 units would NOT require variable selling and administrative expenses. Answer: Swisser Vase Company manufactures and sells vases. Great Products Company has offered Swisser Vase $19 per vase for 5,000 vases. Swisser Vase's normal selling price is $28 per vase. The total manufacturing cost per vase is $24 and consists of variable costs of \$20 per vase and fixed overhead costs of $4 per vase. (NOTE: Assume excess capacity and no effect on regular sales.) How much are the expected increase (decrease) in revenues and expenses from the special sales order? A. Expected increase (decrease) in revenues $90,000; expected increase (decrease) in expenses $90,000 B. Expected increase (decrease) in revenues $80,000; expected increase (decrease) in expenses $70,000 C. Expected increase (decrease) in revenues $95,000; expected increase (decrease) in expenses $100,000 D. Expected increase (decrease) in revenues $95,000; expected increase (decrease) in expenses $70,000

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