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Author Question: Woodson Corporation provided the following information regarding its only product:Sale price per ... (Read 189 times)

tingc95

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Woodson Corporation provided the following information regarding its only product:

Sale price per unit $65.00
Direct materials used $160,000
Direct labour incurred $185,000
Variable manufacturing overhead $120,000
Variable selling and administrative expenses $70,000
Fixed manufacturing overhead $65,000
Fixed selling and administrative expenses $12,000
Units produced and sold 10,000
Assume no beginning inventory


Assuming there is excess capacity at Woodson Corporation, what would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $55 per product? (NOTE: Assume regular sales are not affected by the special order.)
◦ Increase by $108,500
◦ Decrease by $1,500
◦ Increase by $55,000
◦ Increase by $1,500


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Marked as best answer by tingc95 on Jan 4, 2020

Ksh22

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tingc95

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Reply 2 on: Jan 4, 2020
Excellent


flexer1n1

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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