Windham industries has an annual plant capacity of 80,000 units; current production is 65,000 units per year. at the current production volume, the variable cost per unit is $40.00, and the fixed cost per unit is $4.50. the normal selling price of windham’s product is $60.00 per unit. windham has been asked by ramone company to fill a special order for 8,000 units of the product at a special sales price of $38.00 per unit. ramone is located in a foreign country where windham does not currently operate. ramone will market the units in its country under its own brand name, so the special order is not expected to have any effect on windham’s regular sales. by how much will operating income change if the special order is accepted?

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar.spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements.cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery.rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer.gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life.esquire company provides financial statements to external users every three years.