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Business, 30.11.2019 05:31 joselynflores574
He following information relates to current production of outdoor chaise lounges at backyard posh: variable manufacturing costs per unit $ 105 total fixed manufacturing costs $525,000 variable marketing and administrative costs per unit $ 33 total fixed marketing and administrative costs $250,000 the regular selling price per chaise lounge is $ 350. the company is analyzing the opportunity to accept a special sales order for 400 chaise lounges at a price of $ 200 per unit. variable marketing and administrative costs would be $ 15 per unit lower than on regular sales. fixed costs would increase by $ 13 comma 000. the company has the capacity to produce 35 comma 000 chaise lounges per year, but is currently producing and selling 9 comma 000 chaise lounges 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? a. decrease by $ 30 comma 800 b. decrease by $ 17 comma 800 c. increase by $ 30 comma 800 d. increase by $ 17 comma 800
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