Question: QUE RE on A customer has requested that Inga Corporation fill a special order for 2,000 units of product K81 for $25.00 a unit. While
QUE RE on A customer has requested that Inga Corporation fill a special order for 2,000 units of product K81 for $25.00 a unit. While the product would be modified slightly for the special order, product Kat's normal unit product cost is $19.77, consisting of $943 of direct materials and labor (which is a variable cost), $2.98 in variable manufacturing overhead, and $7.36 in fixed manufacturing overhead. The special order would have no effect on the company's total fixed manufacturing averhead costs. The customer would like modifications made to product K81 that would increase the variable costs by $131 per unit and that would require an investment of $10,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would change by: Finish a. $12,560 b. $22,560 O c. 5-2,160 d. 525,180 Oe$7,840
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