Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year,...

70.2K

Verified Solution

Question

Accounting

image
image
image
Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing $22 O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400 Click to select your answer. Marketing and administrative Total fixed costs Manufacturing Marketing and administrative $76,000 $24,000 If a special sales order is accepted for 5,600 widgets at a price of $38 per unit, fixed costs remain unchanged, O A. Increase by $89,600 OB. Increase by $212,800 O C. Decrease by $89,600 OD. Increase by $50,400 Total fixed costs: Manufacturing Marketing and administrative $76,000 $24,000 If a special sales order is accepted for 5,600 widgets at a price of $38 per unit, fixed costs remain unchang and no variable marketing and administrative costs will be incurred for this order, how would operating into be affected? (NOTE: Assume regular sales are not affected by the special order.) O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students