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,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Felsen Industries manufactures basketballs. The budgeted income statement for the year, before
any special orders, is as follows:
Per Unit
$10.00
Amount
$4,000,000
3,200,000
800,000
300,000
$500,000
Sales
Cost of goods sold
Gross Profit
Selling expenses
Operating income
8.00
2.00
.75
$1.25
Fixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 in
selling expenses.
A special order offering to buy 50,000 basketballs for $7.50 each was made to Felsen. There will
be no additional selling expenses if the order is accepted. Assuming Felsen has enough capacity
to 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,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3642b123-039c-4b88-8d17-4967bec487a2%2F96bb43d8-b5bb-429d-9ce2-cc2628a65c4f%2Fgr50ujj_processed.png&w=3840&q=75)
Transcribed Image Text:Felsen Industries manufactures basketballs. The budgeted income statement for the year, before
any special orders, is as follows:
Per Unit
$10.00
Amount
$4,000,000
3,200,000
800,000
300,000
$500,000
Sales
Cost of goods sold
Gross Profit
Selling expenses
Operating income
8.00
2.00
.75
$1.25
Fixed costs included in the above data are $1,200,000 in cost of goods sold and $100,000 in
selling expenses.
A special order offering to buy 50,000 basketballs for $7.50 each was made to Felsen. There will
be no additional selling expenses if the order is accepted. Assuming Felsen has enough capacity
to 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,
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