29 Jun Question Variable manufacturing costs per unit$103
Question
Variable manufacturing costs per unit$103
Total fixed manufacturing costs ?$525,000
Variable marketing and administrative costs per unit$33
Total fixed marketing and administrative costs$280000
The regular selling price per item is$320
The company is analyzing the opportunity to accept an order for 700 items at a price of$240 per unit. Fixed costs would increase by$21000. The company has the capacity to produce 95,000 items per? year, but is currently producing and selling 11,000 items per year. Regular sales will not be affected by the special order. If the company were to accept this special? order, how would operating income be? affected?
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