Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production: Sales price per unit $ 420 Variable costs per unit: Manufacturing $ 270 Marketing and administrative $ 100 Total fixed costs: Manufacturing $ 780 comma 000 Marketing and administrative $ 230 comma 000 If a special sales order is accepted for 3 comma 000 seats at a price of $ 310 per unit, fixed costs increase by $ 6 comma 900, and variable marketing and administrative costs for that order are $ 2 per unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) A. Increase by $ 114 comma 000

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

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What is the difference between the contractual interest rate and the market interest rate?