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needanswersnowp needanswersnowp
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6 years ago
3) Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently produces and sells 75,000 seats per year. The following information relates to current production of seats:

Sale price per unit   $430
   
Variable costs per unit:   
 Manufacturing   $250
 Marketing and administrative   $50
   
Total fixed costs:   
 Manufacturing   $770,000
 Marketing and administrative   $240,000

If a special sales order is accepted for 3000  seats at a price of $330 per unit, and fixed costs increase by $13,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
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bolbolbolbol
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needanswersnowp Author
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6 years ago
Brilliant ツ
dri
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Just got PERFECT on my quiz
sakoon
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Thanks for your help!!
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