Please do not give solution in image format thanku How much will operating income change for the small manufacturer if it meets Mark's 880-ornament special order, at a selling price of $15.00 per unit, while reducing its regular sales by 440 units? (Round per unit calculationsto 2 decimal places, e.g. 15.25 and final answer to O decimal places, e.g. 5,125.)Operating income decreases ✓by $ Mark would like to order special holiday ornaments for his staff of 880 employees. He just found the perfect item: clear glass globes with a unique design and material inside. The only issue is that the globes come from a smallmanufacturer with limited capacity. The manufacturer told Mark that it could only produce 440 of these ornaments for him without affecting its regular sales.Normally, these ornaments sell for $22.00 each and cost the company $15.00 to make (Mark does not know the company's cost structure). Included in the $15.00 cost per unit is $2.25 of fixed-MOH and $1.40 of variable-MOH.(a)How much will operating income change for the small manufacturer if it produces 440 ornaments for Mark and sells them at a special price of $15.00 per unit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and finalanswer to O decimal places, e.g. 5,125.)Operating income increasesby $

Relevant Cost In Management accounting the term of Relevant cost is really matter. Relevant cost is…

Answered: Mark would like to order special…

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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