Business, 02.07.2020 22:01 rianna14

Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product: Sale price per unit $410
Variable costs per unit:

Manufacturing $220
Marketing and administrative $60

Total fixed costs:
Manufacturing $770,000
Marketing and administrative $250,000

Required:
If a special sales order is accepted for 7200 seats at a price of $370 per unit, and fixed costs remain unchanged, how would operating income be affected?

Answers: 1

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Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 sea...