20. Smith Ca received an er te o ri pe 12.000 units but only play e d on the per unitUn cost info Dit materials 50 Direct labor SHTO Variable overhead SI NO Ir Smith the order, need manuturing activities will herected should with Yes hecause we will create by ... No, because income will decrease by 522O 50 u e income will decrease by Ne d. Yes, be n ce will increase by 52.280 the 27 Refore question 26. Smith Co's warehouse distribution center is operating at full capacity and would have to add capacity costing 51.000 for every 5.000 units to be packed and shipped. Should Smith Co accept the special order Yes, because income would increase by c. No, because income would decrease by $6,320 $3.280 b. No, because income would decrease by d. Yes, because income would increase by $6,320 $1.280 28. A company produces two kinds of can openers: one with longer handles and one with shorter handles. The longer opener uses better materials and has a better design for hand support. During the past year, 200,000 shorter openers and 50,000 longer openers were produced and sold. Fixed costs amount to $1,000,000. If the shorter openers were dropped from production, $360,000 of the fixed costs would be avoided. If the longer openers were dropped, S180,000 of the fixed costs would be avoided. Shorter Longer Variable expenses/unit $80 $172 Sales price/unit $88 $180 The contribution margin of the shorter and longer can openers, respectively is a. $400,000/$1,600,000 c. $1,600,000/$8,600,000 b. $1,240,000/220,000 d. $1,600,000/$400,000 29. If the company stops producing the longer opener, what will be the effect on the company's income? a. Decrease by $400,000 c. Decrease by $1,600,000 b. Decrease by $220,000 d. Decrease by $1,240,000