Bridge Industries manufactures a product with the following costs per unit at the expected production of 78,000 units: The company has the capacity to produce 80,000 units. The product regularly sells for £90. A wholesaler has offered to pay £75 each for 2,000 units. If Bridge's special order is accepted, the effect on operating income would be a
A) £20,000 decrease.
B) £52,000 increase.
C) £14,000 increase.
D) none of the above.

Question

Bridge Industries manufactures a product with the following costs per unit at the expected production of 78,000 units:  The company has the capacity to produce 80,000 units. The product regularly sells for £90. A wholesaler has offered to pay £75 each for 2,000 units. If Bridge's special order is accepted, the effect on operating income would be a
A) £20,000 decrease. 
B) £52,000 increase. 
C) £14,000 increase. 
D) none of the above.

Quizplus · Accepted Answer

The Answer of Bridge Industries manufactures a product with the following costs per unit at the expected production of 78,000 units:  The company has the capacity to produce 80,000 units. The product regularly sells for £90. A wholesaler has offered to pay £75 each for 2,000 units. If Bridge's special order is accepted, the effect on operating income would be a
A) £20,000 decrease. 
B) £52,000 increase. 
C) £14,000 increase. 
D) none of the above.

Bridge Industries Manufactures a Product with the Following Costs Per