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Business, 07.04.2020 23:43 alexis9658

Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36 comma 000 sails per year and is currently producing and selling 30 comma 000 sails per year. The following information relates to current production: Sales price per unit $ 180 Variable costs per unit: Manufacturing $ 50 Selling and administrative $ 20 Total fixed costs: Manufacturing $ 675 comma 000 Selling and administrative $ 250 comma 000 If a special pricing order is accepted for 5 comma 700 sails at a sales price of $ 160 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.)

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Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36 comm...
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