Top Posters
Since Sunday
5
k
4
c
4
M
3
t
3
i
3
B
3
k
3
m
3
c
3
o
3
l
3
Home Q & A Board Other Fields Homework Help Business Marketing
New Topic  
bernie2981 bernie2981
wrote...
Go to Answer
Posts: 3810
Rep: 26 0
8 years ago
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   $400
   
Variable costs per unit:   
 Manufacturing   $220
 Marketing and administrative   $50
   
Total fixed costs:   
 Manufacturing   $750,000
 Marketing and administrative   $200,000

If a special sales order is accepted for 3,000 seats at a price of $300 per unit, and fixed costs increase by $10,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
A) Increase by $80,000
B) Increase by $90,000
C) Decrease by $80,000
D) Increase by $230,000
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 714 times
2 Replies
Replies
Answer verified by a subject expert
nucleinuclei
wrote...
#1
Top Poster
Posts: 2158
Rep: 418 0
8 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

bernie2981 Author
wrote...
#2
8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  661 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 299
  
 186
  
 415
Your Opinion
Who's your favorite biologist?
Votes: 587
Previous poll results: What percentage of nature vs. nurture dictates human intelligence?