Question

Comfort Cloud manicures seats for a planes. The company has the capacity to produce 100.000 seats per year, but currently pro

Variable costs per unit: Manufacturing Marketing and administrative $250 $80 Total fixed costs: Manufacturing Marketing and a

Totado Manufacturing Marketing and $780 000 $200 000 strive Ha special sales order is complied for 2.600 salata price of $310

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Answer #1

B.increase by $133,900.

contribution per seat for special order =$310 price - 250 variable manufacturing cost -$6 variable marketing

=>$54 per seat.

total contribution for order = $54*2600 seats

=>$140,400

total income from order = $140,400-6500 increase in fixed costs

=>$133,900.

so increase in net income due to special order =>$133,900.

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