Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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Category > Accounting Posted 11 Aug 2017 My Price 7.00

Sky High Seats

Please dont just write the answee. could you also type how you got it. Thanks!

 

Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently producing and selling 75,000 seats per year. The following information relates to current production:

 

Sale price per unit

$400
   

Variable costs per unit:

  

Manufacturing

$220

Marketing and administrative

$50
   

Total fixed costs:

  

Manufacturing

$750,000

Marketing and administrative

$200,000

 

If a special sales order is accepted for 7,000 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 07:08 PM My Price 7.00

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