D A corporation provided the following information regarding its only product: Sales price per unit Direct...
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D A corporation provided the following information regarding its only product: Sales price per unit Direct materials used $60 $160,000 Direct labor costs incurred $230,000 Variable manufacturing overhead costs incurred $150,000 Variable selling and administrative costs incurred $60,000 Fixed manufacturing overhead costs incurred Fixed selling and administrative costs incurred $80,000 $10,000 Units produced and sold 12,000 Assuming there is excess capacity, what would be the change in operating income as a result of accepting a special order for 1,000 units at a sales price of $55 per unit assuming additional fixed manufacturing overhead costs of $7,000 would be incurred? O Operating income increases $2,000, O Operating income increases $5,000. O Operating income decreases $2,000. O Operating income decreases $87,000. D A corporation provided the following information regarding its only product: Sales price per unit Direct materials used $60 $160,000 Direct labor costs incurred $230,000 Variable manufacturing overhead costs incurred $150,000 Variable selling and administrative costs incurred $60,000 Fixed manufacturing overhead costs incurred Fixed selling and administrative costs incurred $80,000 $10,000 Units produced and sold 12,000 Assuming there is excess capacity, what would be the change in operating income as a result of accepting a special order for 1,000 units at a sales price of $55 per unit assuming additional fixed manufacturing overhead costs of $7,000 would be incurred? O Operating income increases $2,000, O Operating income increases $5,000. O Operating income decreases $2,000. O Operating income decreases $87,000.
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