Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year,...
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Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing $22 O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400 Click to select your answer. Marketing and administrative Total fixed costs Manufacturing Marketing and administrative $76,000 $24,000 If a special sales order is accepted for 5,600 widgets at a price of $38 per unit, fixed costs remain unchanged, O A. Increase by $89,600 OB. Increase by $212,800 O C. Decrease by $89,600 OD. Increase by $50,400 Total fixed costs: Manufacturing Marketing and administrative $76,000 $24,000 If a special sales order is accepted for 5,600 widgets at a price of $38 per unit, fixed costs remain unchang and no variable marketing and administrative costs will be incurred for this order, how would operating into be affected? (NOTE: Assume regular sales are not affected by the special order.) O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400
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