Bidbid Company manufactures a product with a unit variable cost of OMR 95 and a unit sales price of OMR 220. Fixed manufacturing costs were OMR 480,000 when 10,000 units were produced and sold. The company can sell an additional 1,000 units at OMR 140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: Select one: Oa. Income would increase by OMR 40,000. O b. Income would decrease by OMR 35,000. O c. None of the answers are correct. O d. Income would increase by OMR 45,000. O e. Income would increase by OMR 140,000.

Bidbid Company manufactures a product with a unit variable cost of OMR 95 and a unit sales price of OMR 220. Fixed manufacturing costs were OMR 480,000 when 10,000 units were produced and sold. The company can sell an additional 1,000 units at OMR 140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: Select one: Oa. Income would increase by OMR 40,000. O b. Income would decrease by OMR 35,000. O c. None of the answers are correct. O d. Income would increase by OMR 45,000. O e. Income would increase by OMR 140,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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