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 per 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.

Question

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 per 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.

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS:
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Walton Company Manufactures a Product with the Following Costs Per