Wilson Corporation sells an industrial solvent at a normal selling price of $100 per barrel. The variable cost per barrel is $40, and the company's total fixed cost is $900,000 per month. The company has excess capacity of 30,000 barrels per month. Management was recently contacted by a potential buyer with whom they had no prior experience. The buyer offered to buy a special order of 5,000 barrels at a discount price of $80 per barrel. The special nature of the order would increase variable costs associated with it by $10 per barrel over the normal variable cost. The special order would also increase fixed costs by $60,000. If the special order is accepted, operating income will increase by $ .

$ 90000

Explanation:

Given :

The normal selling price of an industrial solvent by Wilson Corporation = $ 100 per barrel.

The variable cost per barrel = $ 40

Total fixed cost of the company = $ 900,000 per month.

Number of barrels in excess = 30,000 per month

Number of barrels the buyer wants to buy = 5000 barrels

New fixed cost = $ 60,000

The increased variable cost is $ 10 per barrel over the normal variable cost.

Now if this special order is accepted, the operating income of the company would increase by an amount of $ 90,000.

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

answer; /// the use of a bank credit card to make purchase;