The following information relates to current production of bench seats for boats at Aquamarine Manufacturing. 1...
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The following information relates to current production of bench seats for boats at Aquamarine Manufacturing. 1 (Click on the icon to view the information.) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 3,000 bench seats at a price of $140 per unit. Variable marketing and administrative costs would be $15 per unit lower than on regular sales. Fixed costs would increase by $10,000. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? OA. Decrease by $59,000 B. Decrease by $69,000 C. Increase by $59,000 D. Increase by $69.000 The following information relates to current production of bench seats for boats at Aquamarine Manufacturing. 1 (Click on the icon to view the information.) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 3,000 bench seats at a price of $140 per unit. Variable marketing and administrative costs would be $15 per unit lower than on regular sales. Fixed costs would increase by $10,000. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? OA. Decrease by $59,000 B. Decrease by $69,000 C. Increase by $59,000 D. Increase by $69.000
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The correct answer is B Decrease by 69000 Aquamarine Manufactur... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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