Posted: February 16th, 2020
Overhead Variable Selling Assignment
the following information pertains to the next 2 questions. The company provided the following per unit information regarding its only product. phones Selling price per unit. S 80 Direct material Direct labor Variable manufacturing overhead Variable selling and administrative expenses 54.80 Fixed manufacturing overhead $6.80 Fixed selling and administrative expenses. 33.20 Units produced and sold 10,000 units 12 Assuming Finn Company has excess capacity,
what wo y mas excess capacity, what would be the effect of accepting a special order for 2,000 units at a price of 564 per phone 2. Operating income would decrease by $32,000 b. Operating income would increase by $128.000, Operating income would increase by 516,000 d. Operating income would increase by $36.000 Operating income would decrease by $4,000 Assuming Fin Company is a full capacity, what would be the effect of accepting a special order for 2,000 units at a price of 564 per phone a. Operating income would decrease by $32,000 b. Operating income would increase by $128.000 Operating income would increase by $16.000 Operating to come would increase by $36.000 e. Operating inconvold disease try $4.00. .
