The falling data are for Appleknockoff company's production run of cell phones for next month (per...

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The falling data are for Appleknockoff company's production run of cell phones for next month (per phone). Direct materials $6.00 3.2 Direct labor Variable factory O/H 2.8 Fixed factory O/H 4 Total manufacturing cost $16.00 THE cost driver for variable factory overhead is units produced. Fixed factory overhead is based on budgeted production of 200,000 units per month the normal selling price for the phones is $20 per phone marketing cars consist of a variable component sales Commission of 5% of sales and fixed component 260,000 per month. during the month a one-time only special-order increase was received for 1000 phones at $15.20 per phone. we would not have to pay the sales Commission on this order. sufficient idle capacity is available to produce these phones, but the order was rejected because the selling price is below the budgeted factory cost. use this data to answer the next three questions. 1. What would have been the effect on operating income of accepting the special order assuming that regular sales would not have been effected? (only input the dollar amount of the change in Ol. the next question will ask whether it is an increase or decrease in Ol.) 2. Was it an increase or a decrease in OI? The falling data are for Appleknockoff company's production run of cell phones for next month (per phone). Direct materials $6.00 3.2 Direct labor Variable factory O/H 2.8 Fixed factory O/H 4 Total manufacturing cost $16.00 THE cost driver for variable factory overhead is units produced. Fixed factory overhead is based on budgeted production of 200,000 units per month the normal selling price for the phones is $20 per phone marketing cars consist of a variable component sales Commission of 5% of sales and fixed component 260,000 per month. during the month a one-time only special-order increase was received for 1000 phones at $15.20 per phone. we would not have to pay the sales Commission on this order. sufficient idle capacity is available to produce these phones, but the order was rejected because the selling price is below the budgeted factory cost. use this data to answer the next three questions. 1. What would have been the effect on operating income of accepting the special order assuming that regular sales would not have been effected? (only input the dollar amount of the change in Ol. the next question will ask whether it is an increase or decrease in Ol.) 2. Was it an increase or a decrease in OI?

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Answer To calculate the effect on operating income of accepting the special order we nee... View the full answer