Stangle Company manufactures ties.When 28,000 ties are produced,the costs per unit are:
The ties normally sell for $22 each.The company has received a special order for 2,000 ties at $10.00 per tie.The company has excess capacity.
Required:
Compute the amount by which the operating income would change if the order were accepted.

Question

Stangle Company manufactures ties.When 28,000 ties are produced,the costs per unit are:
  The ties normally sell for $22 each.The company has received a special order for 2,000 ties at $10.00 per tie.The company has excess capacity.
Required:
Compute the amount by which the operating income would change if the order were accepted.

Quizplus · Accepted Answer

The Answer of Stangle Company manufactures ties.When 28,000 ties are produced,the costs per unit are:
  The ties normally sell for $22 each.The company has received a special order for 2,000 ties at $10.00 per tie.The company has excess capacity.
Required:
Compute the amount by which the operating income would change if the order were accepted.

Stangle Company Manufactures Ties