Question: Question 15 0.6 points Save Ans Tunnel Incorporated provided the following information regarding its single product: Pirect materials used Direct labor incurred Variable manufacturing overhead


Question 15 0.6 points Save Ans Tunnel Incorporated provided the following information regarding its single product: Pirect materials used Direct labor incurred Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $240,000 $420,000 $140,000 $100,000 $55,000 $20,000 The regular selling price for the product is $80. The annual quantity of units produced and sold is 44,000 units (the costs above relate to the 44,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 1210 units at a sale price of $41 per product? The special order units would not require any variable selling and administrative expenses. (Round any intermediary calculations to the nearest cent. Round your final answer to the nearest dollar.) Decrease by $22,002 o Increase by $21,998 Increase by $22,002 Decrease by $21.998 Question 18 0.6 points Save Ans Highway 55 Studios has budgeted the following amounts for its next fiscal year: Total fixed expenses $1,215,000 Selling price per unit $80 Variable expenses per unit $35 If Highway 55 Studios can reduce fixed expenses by $60,750, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units? $32.75 $47.25 $35.00 $2.25
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