Nonsoon manufactures basketballs. The budgeted income statement for the year, before any special orders, is...
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Nonsoon manufactures basketballs. The budgeted income statement for the year, before any special orders, is as follows: Sales Cost of goods sold Gross Profit Selling expenses Operating income Amount $4,000,000 3,200,000 800,000 300,000 $500,000 Per Unit $10.00 8.00 2.00 .75 $1.25 Fixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 in selling expenses. A special order offering to buy 50,000 basketballs for $7.50 each was made to Nonsoon. There will be no additional selling expenses if the order is accepted. Assuming Nonsoon has enough capacity to manufacture 50,000 more basketballs, by what amount would operating income be increased or decreased as a result of accepting the special order? $
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