Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.). OA. Decrease by $97,410 ОВ Increase by $361.590

Cecil Incorporated provided the following information regarding its only product: Sale price per unit Direct materials used Direct labor incurred Variable manufacturing overhead Variable selling and administrative expenses Fixed manufacturing overhead Fixed selling and administrative expenses Units produced and sold Assume no beginning inventory $50.00 $161,000 $189,000 $124,000 $70,000 $65,000 $12,000 21,000 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,100 units at a sale price of $45 per product? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.). OA. Decrease by $97,410 ОВ Increase by $361.590

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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