Ask Question
BusinessBusiness
30 October, 15:41

If a special sales order is accepted for 8,100 widgets at a price of $39 per unit, and fixed costs increase by $13,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

+3
Answers (1)
  1. 30 October, 16:28
    0
    D) Increase by $68,000

    Explanation:

    The computation of change in the operating income is shown below:

    Sales (8,100 widgets * $39) $315,900

    Less: Variable cost (8,100 widgets * $29) ($234,900)

    Contribution margin $81,000

    Less: Increase in fixed assets - $13,000

    Net income increased $68,000

    We simply applying the above format so that the change in the operating income could be find out. Since the net income is in positive so it shows an increment
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If a special sales order is accepted for 8,100 widgets at a price of $39 per unit, and fixed costs increase by $13,000, how would operating ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Raymond owns an Accidental Death and Dismemberment Policy with a principal sum of $50,000, and a capital sum of $25,000. After owning the policy for several months, Raymond dies as the result of coronary artery disease.
Answers (1)
EA1. LO 4.1Little Things manufactures toys. For each item listed, identify whether it is a product cost, a period cost, or not an expense.
Answers (1)
Rebecca works for a company that has clearly defined lines of authority. Each employee knows that he or she has authority and responsibility for a distinct set of tasks.
Answers (1)
Rothstein Corp. had the same capital structure in 2021 and 2022, consisting of the following: Preferred stock, $12 par, 5% cumulative, 20,000 shares issued and outstanding$240,000 Common stock, $6 par, 250,000 shares issued and outstanding 1,500,000
Answers (1)
At which stage does advertising catch the attention of customers by building awareness of the product? O A. product existence O B. product capture OC. customer interest O D. product purchase
Answers (1)
New Questions in Business
As you're checking out the online edition of your local newspaper, you quickly scan a report in the business section that says government spending will again exceed tax revenues in the current year.
Answers (1)
Swiss Group reports net income of $36,000 for 2018. At the beginning of 2018, Swiss Group had $149,000 in assets. By the end of 2018, assets had grown to $199,000. What is Swiss Group's 2018 return on assets
Answers (1)
Assume that the banking system has total reserves of $100 billion. Assume also that required reserves are 10 percent of checking deposits, and that banks hold no excess reserves and households hold no currency. a.
Answers (1)
Repbulic LLC exchanged land used in its business for some new land to be used in the business. Republic LLC originally purchased the land it exchanged for $37,500. The new land had a fair market value of $39,750.
Answers (1)
Jacob chose to spend the afternoon swimming rather than going to the movies any value given up from not going to the movies is the
Answers (1)
Home » Business » If a special sales order is accepted for 8,100 widgets at a price of $39 per unit, and fixed costs increase by $13,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
Sign Up Forgot Password?