Felsen Industries manufactures basketballs. The budgeted income statement for the year, beforeany special orders, is as follows:Per Unit$10.00Amount$4,000,0003,200,000800,000300,000$500,000SalesCost of goods soldGross ProfitSelling expensesOperating income8.002.00.75$1.25Fixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 inselling expenses.A special order offering to buy 50,000 basketballs for $7.50 each was made to Felsen. There willbe no additional selling expenses if the order is accepted. Assuming Felsen has enough capacityto manufacture 50,000 more basketballs,or decreased as a result of accepting the special order? $decrease] (circle one)what amount would operating income be increased[increase,

The special order can be fulfilled when the business has the full capacity for the production.

es baskelbals. The ageted ncome statement 1or the year, belore ny special orders, is as follows: Per Unit $10.00 ales ost of goods sold Fross Profit elling expenses "perating income Amount $4,000,000 3,200,000 800,000 300,000 $500,000 8.00 2.00 .75 $1.25 ixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 in elling expenses. special order offering to buy 50,000 basketballs for $7.50 each was made to Felsen. There will e no additional selling expenses if the order is accepted. Assuming Felsen has enough capacity o manufacture 50,000 more basketballs, by what amount would operating income be increased r decreased as a result of accepting the special order? $ [increase,

es baskelbals. The ageted ncome statement 1or the year, belore ny special orders, is as follows: Per Unit $10.00 ales ost of goods sold Fross Profit elling expenses "perating income Amount $4,000,000 3,200,000 800,000 300,000 $500,000 8.00 2.00 .75 $1.25 ixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 in elling expenses. special order offering to buy 50,000 basketballs for $7.50 each was made to Felsen. There will e no additional selling expenses if the order is accepted. Assuming Felsen has enough capacity o manufacture 50,000 more basketballs, by what amount would operating income be increased r decreased as a result of accepting the special order? $ [increase,

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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