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Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: Sales price per unit Variable costs per unit: Manufacturing Marketing and administrative $43 O A. Decrease by $69,600 B. Increase by $29,000 C. Increase by $226,200 O D. Increase by $69,600 $27 $7 Total fixed costs: Manufacturing $76,000 $24,000 Marketing and administrative If a special sales order is accepted for 5,800 umbrellas at a price of $39 per unit, fixed costs remain unchanged, and no

Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: Sales price per unit Variable costs per unit: Manufacturing Marketing and administrative $43 O A. Decrease by $69,600 B. Increase by $29,000 C. Increase by $226,200 O D. Increase by $69,600 $27 $7 Total fixed costs: Manufacturing $76,000 $24,000 Marketing and administrative If a special sales order is accepted for 5,800 umbrellas at a price of $39 per unit, fixed costs remain unchanged, and no

FINANCIAL ACCOUNTING
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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Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: $43 Sales price per unit Variable costs per unit: Manufacturing Marketing and administrative $27 $7 Total fixed costs: Manufacturing $76,000 $24,000 Marketing and administrative If a special sales order is accepted for 5,800 umbrellas at a price of $39 per unit, fixed costs remain unchanged, and no A. Decrease by $69,600 B. Increase by $29,000 O C. Increase by $226,200 D. Increase by $69,600
Transcribed Image Text:Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but it currently produces and sells 75,000 units per year. The following information relates to current production: $43 Sales price per unit Variable costs per unit: Manufacturing Marketing and administrative $27 $7 Total fixed costs: Manufacturing $76,000 $24,000 Marketing and administrative If a special sales order is accepted for 5,800 umbrellas at a price of $39 per unit, fixed costs remain unchanged, and no A. Decrease by $69,600 B. Increase by $29,000 O C. Increase by $226,200 D. Increase by $69,600
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