Question: Busy Co. can make 200 widgets per month and cannot make more than 250. The following is the cost per widget information related to manufacturing:

 Busy Co. can make 200 widgets per month and cannot make

Busy Co. can make 200 widgets per month and cannot make more than 250. The following is the cost per widget information related to manufacturing: Direct Materials $15 Direct Labor 10 Variable Manufacturing Overhead 2 Fixed Manufacturing Overhead 12 *The Fixed Manufacturing Overhead cost per unit is calculated based on a volume of 200 widgets. Busy Co. always sells all 200 widgets it produces for $55 per widget. Busy Co. receives a special order for 100 widgets but the order asks for a price of $50 dollars a widget. The order cannot be partially filled. Outside of this order, there is still a demand for 200 widgets. If Busy Co. accepts this order, how will their net income be affected? O c. Net income will decrease by $300. d. Net income will increase by $2,300. b. Net income will increase by $900. O a.Net income will increase by $1,100

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