Meleys Company reported the following results from the sale of 18,000 units of BY-64 Sales Variable manufacturing costs 162,000 Fixed manufacturing costs Variable selling costs 90,000 72,000 Foad administrative costs The company has received a special, one-time-only order for 2,100 units of BY-64 at $31 each Meleys Company has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the full cost of production is $36. Which of the following conectly notes the change in income if the special order is accepted? $8,400 decrease $4,400 increase $10.500 increase None of these $936.000 456,000

Meleys Company reported the following results from the sale of 18,000 units of BY-64 Sales Variable manufacturing costs 162,000 Fixed manufacturing costs Variable selling costs 90,000 72,000 Foad administrative costs The company has received a special, one-time-only order for 2,100 units of BY-64 at $31 each Meleys Company has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the full cost of production is $36. Which of the following conectly notes the change in income if the special order is accepted? $8,400 decrease $4,400 increase $10.500 increase None of these $936.000 456,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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