Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production: If a special sales order is accepted for 2,000 sails at a price of $70 per unit, and if the order requires no incremental marketing and administrative costs, and no change in fixed costs, what will the effect on operating income be?

Question

Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production:  If a special sales order is accepted for 2,000 sails at a price of $70 per unit, and if the order requires no incremental marketing and administrative costs, and no change in fixed costs, what will the effect on operating income be?

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The Answer of Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production:  If a special sales order is accepted for 2,000 sails at a price of $70 per unit, and if the order requires no incremental marketing and administrative costs, and no change in fixed costs, what will the effect on operating income be?

Lowwater Sailmakers Manufactures Sails for Sailboats