Use the information below to answer the following question(s):
The following information relates to current production of bench seats for boats at Aquamarine Manufacturing:

The regular selling price per bench seat is $200. The company has the capacity to produce 15,000 bench seats per year, but is currently producing and selling 10,000 bench seats per year.
-Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 3,000 bench seats at a price of $140 per unit. Variable marketing and administrative costs would be $15 per unit lower than on regular sales. Fixed costs would increase by $10,000. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?

Question

Use the information below to answer the following question(s):
The following information relates to current production of bench seats for boats at Aquamarine Manufacturing:
  
The regular selling price per bench seat is $200. The company has the capacity to produce 15,000 bench seats per year, but is currently producing and selling 10,000 bench seats per year.
-Aquamarine Manufacturing is analyzing the opportunity to accept a special sales order for 3,000 bench seats at a price of $140 per unit. Variable marketing and administrative costs would be $15 per unit lower than on regular sales. Fixed costs would increase by $10,000. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?

Quizplus · Accepted Answer

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Use the Information Below to Answer the Following Question(s)