Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. voyage sail makers manufactures sails for sailboat

Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37,000...

90.2K

Verified Solution

Question

Accounting

image

Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: $180 Sales price per unit Variable costs per unit $60 $10 Manufacturing Selling and administrative Total fixed costs: S675,000 300,000 Manufacturing Selling and administrative If a special pricing order is accepted for 5,500 sails at a sales price of $150 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.) A. Operating income decreases by $440,000 O B. Operating income decreases by $825,000 C. Operating income increases by $825,000 0 D. Operating income increases by $440,000

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!
Become a Member

Other questions asked by students

Q

Starset Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new...

Finance
Q

The American novelist James Baldwin wrote, \"Words like freedom, justice, democracy are not common concepts; on...

Mechanical Engineering
Q

help Patty Pictures Partners uses the aging method for its...

Accounting
Q

i need help please ! Turner, Roth, and...

Accounting
Q

Course:International Accounting please answer correctly! 1. What is the...

Accounting
Q

On October 29, 2013, Miss Joan Seely (SSN 123-45-6789) sells her principal residence for $150,000...

Accounting
Q

! Required information [The following information applies to the questions displayed below.] ...

Accounting
Q

Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On...

Accounting
Q

Delaware Corp. prepar un presupuesto maestro que inclua $18 225 para materiales directos, $28 800...

Accounting
Q

In an ABC system, what is a cost pool? a)Total cost required to design...

Accounting
Q

Suppose an entrepreneur is creating a new firm and has a single project requiring an...

Finance
Q

What would you pay for a bond that pays an annual coupon of $35, has...

Finance