4) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000...
80.2K
Verified Solution
Link Copied!
Question
Accounting
4) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150 per unit. Fixed costs would remain unchanged. The variable marketing and administrative costs of $30 per unit would NOT be incurred on this special order. 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?
A) Decrease by $36,000 B) Decrease by $96,000
C) Increase by $96,000 D) Increase by $36,000
4) Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 2,000 bench seats at a price of $150 per unit. Fixed costs would remain unchanged. The variable marketing and administrative costs of $30 per unit would NOT be incurred on this special order. 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?
A) Decrease by $36,000 B) Decrease by $96,000
C) Increase by $96,000 D) Increase by $36,000
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
