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1) If LingYu Ltd accepts this order, will operating income increase, decrease or stay the same

2) By how much will operating income change if the order is accepted? Enter positive number

3) Assume instead , that the order from Kendall Ltd was obtained through a sales person so sales commission has to be paid. In addition, Kendall Ltd has asked LingYu Ltd to pay all transportation costs. Given this new information, will LingYu's operating income increase, decrease, or stay the same?

4) Given the new information, by how much will operating income change if the order was accepted now? Enter positive number

5) What qualitative factors support accepting the order from Kendall Ltd.

They have provided the following details: Capacity (units) 40,000 Production (units) 32,000 Fixed non-manufacturing costs (annual) $86,400 Kendell Ltd., who has not bought from LingYu Ltd. before, has offered to buy jewelry boxes for a special event that Kendell is managing. Kendell Ltd. is from a geographic region outside the area normally serviced by LingYu Ltd. Kendell Ltd. has agreed to pay the transportation costs. In addition, because no sales person was involved, there will be no sales commission paid on this sale. Other details of Kendell's offer are as follows: Total units required 6,000 Purchase price per unit $28.00 Transportation costs / unit $1.30 Use the above information to answer the following questions. Question 32 (1 point) If LingYu Ltd. accepts this order, will operating income increase, decrease or stay the same? a) Increase MacBook Air 80 F5 F6 F7 DII F8 DD F9 F10 % 3 $ 4 5 6 & 7 00 * 9 O E R T Y U - 0 E G They have provided the following details: Capacity (units) 40,000 Production (units) 32,000 Fixed non-manufacturing costs (annual) $86,400 Kendell Ltd., who has not bought from LingYu Ltd. before, has offered to buy jewelry boxes for a special event that Kendell is managing. Kendell Ltd. is from a geographic region outside the area normally serviced by LingYu Ltd. Kendell Ltd. has agreed to pay the transportation costs. In addition, because no sales person was involved, there will be no sales commission paid on this sale. Other details of Kendell's offer are as follows: Total units required 6,000 Purchase price per unit $28.00 Transportation costs / unit $1.30 Use the above information to answer the following questions. Question 32 (1 point) If LingYu Ltd. accepts this order, will operating income increase, decrease or stay the same? a) Increase MacBook Air 80 F5 F6 F7 DII F8 DD F9 F10 % 3 $ 4 5 6 & 7 00 * 9 O E R T Y U - 0 E G