Meleys Company reported the following results from the sale of 18,000 units of BY-64 Sales Variable manufacturing costs 162,000 Fixed manufacturing costs Variable selling costs 90,000 72,000 Foad administrative costs The company has received a special, one-time-only order for 2,100 units of BY-64 at $31 each Meleys Company has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the full cost of production is $36. Which of the following conectly notes the change in income if the special order is accepted? $8,400 decrease $4,400 increase $10.500 increase None of these $936.000 456,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Meleys Company reported the following results from the sale of 18,000 units of BY-64:
Sales
Variable manufacturing costs
Fixed manufacturing costs
Variable selling costs
$936.000
466,000
162,000
90,000
72,000
Fixed administrative costs
The company has received a special, one-time-only order for 2,100 units of BY-64 at $31 each. Meleys Company has available capacity, and the president is in favor of accepting the order. She feels it would be
profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost of production is $36. Which of the following correctly notes the change in income if the special order is
accepted?
$8,400 decrease
$10.500 decrease
O $8,400 increase
$10,000 increase
None of these
Transcribed Image Text:Meleys Company reported the following results from the sale of 18,000 units of BY-64: Sales Variable manufacturing costs Fixed manufacturing costs Variable selling costs $936.000 466,000 162,000 90,000 72,000 Fixed administrative costs The company has received a special, one-time-only order for 2,100 units of BY-64 at $31 each. Meleys Company has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost of production is $36. Which of the following correctly notes the change in income if the special order is accepted? $8,400 decrease $10.500 decrease O $8,400 increase $10,000 increase None of these
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