6

Using the table below, how much would SixthZ have to borrow to have an ending cash balance of $10,000 on March 31^st?

SixthZ currently produces and sells 1,500 cornhole board sets per year and sells them at $110 per cornhole board set. SixthZ has the capacity to produce 1,600 cornhole boards sets. SixthZ has received a special order from the UCDavis sororities and fraternities. They would like to buy 55 board sets at a price of $80 per board set. The product unit cost is shown below:

Direct Materials	$45
Direct Labor	$35
Variable Overhead	$5
Fixed Overhead	$15

SixthZ incurs no variable selling and administrative expenses. Should SixthZ accept the special order?

Group of answer choices

No, because accepting the order would result in a $275 decrease in operating income

No, because accepting the order would result in a $1,100 decrease in operating income

No, because accepting the order would result in a $1,650 decrease in operating income

Yes, because accepting the order would result in a $375 increase in operating income

$5,350

$6,500

$4,600

$1,400