What is the last step in developing an ABC system? a) Allocate the costs to the activities using the activity cost allocation rates Ob) Identify the primary activities and estimate a total cost pool for each. c) Assign the overhead costs to products using the cost driver rates d) Calculate an activity cost allocation rate for each activity ana JBC Inc. produces and sells airplane seats. The company currently ma sells 12,500 seats but has the capacity to produce 18,000 seats. Price and cost data for the company's current production are as follows: Sale price per unit $140 Variable manufacturing cost per unit $68 Variable Marketing and administrative cost per unit $17 Fixed manufacturing cost $340,000 Fixed marketing and administrative cost $220,000 JBC recently receives a special order for 1,000 seats at a price of $115. JBC would incur fixed costs of $15,000 for this special order. All marketing and administrative expenses would remain unchanged. What is the effect on JBC's operating income if the order is accepted? a) Increase by $29,800 b) Increase by $47.000 c) Increase by $32,000 d) Increase by $4,800 JBC Inc. operates two product lines: A and B. The company's most recent contribution margin income statement shows the following information: Total Product A Product B Sales revenue $342.000 $162,000 $180,000 Variable expenses 252,000 97,000 155,000 Contribution margin 90,000 65,000 25,000 Fixed expenses 77,000 43,000 34,000 Operating income $13,000 $22,000 ($9,000) (loss) Assume that $8,000 of JBC's fixed costs will be eliminated by dropping the Product B line, and that the space formerly assigned to produce the product line is rented for $13,000, what is the effect on the company's operating income? a) operating income will decrease by $12,000 b) operating income will increase by $12,000 Oc) operating income will increase by $21,000 d) operating income will decrease by $4,000 A special sales order is rejected under which of the following condition(s): a) the variable cost of the order is higher than the special order price b) there is no idle capacity Oc) the special order price is less than the regular sales price d) Both (A) and (B) are correct