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Business, 27.11.2019 06:31 GalaxyWolf1895

4. woodson corporation provided the following information regarding its only product: sale price per unit $65.00 direct materials used $160,000 direct labor incurred $185,000 variable manufacturing overhead $120,000 variable selling and administrative expenses $70,000 fixed manufacturing overhead $65,000 fixed selling and administrative expenses $12,000 units produced and sold 10,000 assume no beginning inventory assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1,200 units at a sale price of $60 per product assuming additional fixed manufacturing overhead costs of $5,000 is incurred? (note: assume regular sales are not affected by the special order.)

a. increase by $72,000

b. decrease by $2,800

c. increase by $7,800

d. increase by $2,800

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4. woodson corporation provided the following information regarding its only product: sale price pe...
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