Business, 20.12.2019 19:31 makwoods417ow2txa

Walton company manufactures a product with the following costs per unit at the expected production level of 84,000 units:
direct materials $12
direct labor 36
variable overhead 18
fixed overhead 24

the company has the capacity to produce 90,000 units. the product regularly sells for $120. a wholesaler has offered to pay $110 per unit for 7,500 units. if the special order is accepted, the effect on operating income would be a

a. $75,000 decrease.
b. $429,000 increase.
c. $495,000 increase.
d. $249,000 increase.

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