Question: Wright Corporation's contribution format income statement for last month appears below. Sales $ 69,000 Variable expenses 31,800 Contribution margin 37,200 Fixed expenses 14,400 Net operating
Wright Corporation's contribution format income statement for last month appears below. Sales $ 69,000 Variable expenses 31,800 Contribution margin 37,200 Fixed expenses 14,400 Net operating income $ 22,800 There were no beginning or ending inventories. The company produced and sold 3,000 units during the month. The company has an opportunity to secure a special order of 840 units if it is willing to drop the selling price on these units to $21. Costs of securing the special order would be $1,080. The special order would not affect the company's regular sales. If the special order is accepted, the company's overall net operating income will: (Do not round intermediate calculations.) increase by $8,736 increase by $7,656 increase by $3,840 remain the same
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
