Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: The company has the capacity to produce 90,000 units. The product regularly sells for £120. A wholesaler has offered to pay £110 a unit for 7,500 units.
If the special order is accepted, the effect on operating income would be a
A) £75,000 decrease.
B) £429,000 increase.
C) £495,000 increase.
D) £249,000 increase.
Correct Answer:
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