Question: Please answer both questions!! Will give thumbs up Jaws Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to

Please answer both questions!! Will give thumbs up Please answer both questions!! Will give thumbs up Jaws Inc. currently sells

Jaws Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to produce 50,000 tools. Its product sells for $30 per tool and the variable costs incurred are as follows on a per tool basis: Direct materials $7 Direct labour $6 Sales commission $1 A customer has proposed a special order to purchase 10,000 tools at a lower selling price. If Jaws accepts the order, the company will not have to pay its sales personnel their sales commissions. However, the company will incur a shipping cost of $3 per tool. If Jaws accepts the order at a special price of $20 per tool, how would operating income be affected? Multiple Choice decrease by $30,000 increase by $40,000 Operating income is not affected decrease by $120,000 Increase by $50,000 Jaws Inc. Currently sells 40,000 dental tools to its regular customers but it has a capacity to produce 50,000 tools. Its product sells for $30 per tool and the variable costs incurred are as follows on a per tool basis: Direct materials $6 Direct labour $7 Sales commission $1 A customer has proposed a special order to purchase 10,000 tools at a lower selling price. If Jaws accepts the order, the company will not have to pay its sales personnel their sales commissions. However, the company will incur a shipping cost of $3 per tool. Jaws should reject the order if the unit price for the special order is below the minimum price of Multiple Choice O $16 O $15 O $30 0 $13 some other

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