Homework Answers
Change in Operating Income = Incremental Revenues – Incremental Costs
Since there is spare capacity, no additional fixed cost will be incurred for special order
Change in operating Income = (475-220)*4,400
= $1,122,000
Hence, the answer is C. Increase
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Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product: Sale price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative $270 $60 Total fixed costs: Manufacturing Marketing and administrative $770,000 $240,000 If a special sales order is accepted for 7,500 seats at a price of $370 per unit, and...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production of seats: 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 4,000 seats at a price of $325 per unit, fixed costs remain...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently produces and sells 75,000 seats per year. The following information relates to current production of seats: Sale price per unit $430 Variable costs per unit: Manufacturing $250 Marketing and administrative $50 Total fixed costs: Manufacturing $770,000 Marketing and administrative $240,000 If a special sales order is accepted for 3000 seats at a price...
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per...
Comfort Cloud 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 Marketing and administrative S220 $50 Total fixed costs: Manufacturing Marketing and administrative $750,000 $200,000 If a special sales order is accepted for 5,500 seats at a price of $325 per unit, fixed costs remain unchanged, and...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is cunently produces and sells 75.000 seats per year The following irnformation relates to curent production of seats Sale price per unit S420 Variable costs per unit Manufacturing Makeling and administrative $220 560 Tetal feed costs Manufacturing Marketing and administrative $780 000 $250 000 Ya special sales order is accepted for 3,400 seats at a price of 5310 per unt, and...
13. Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats...
13. Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75.000 seats per year. The following information relates to current production: Sales price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative S80 Total fixed costs: Manufacturing Marketing and administrative $760,000 $220,000 If a special sales order is accepted for 2700 seats at a price of $350 per unit, fixed costs increase by $6600, and...
how do i solve Sky High Seats manufactures seats for airplanes. The company has the capacity...
how do i solve
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100 000 as per year but is currently produces and sols 75.000 seats per year. The following information relates to current production of seats: Sale price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative $220 $50 Totalfixed costs Manufacturing $800,000 Marketing and administrative $230,000 If a special sales order is accepted for 3.100 seats at a price of $300...
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per...
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production: (Click the icon to view the data.) If a special sales order is accepted for 2,700 seats at a price of $350 per unit, fixed costs increase by $6,600, and variable marketing and administrative costs for that order are $1 per unit, how would operating income be...
Please answer using the information Sky High Seats manufactures seats for airplanes. The company has the capacity t...
Please answer using the information
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 10,600 seats per year, but is currently produces and sells 7,500 seats per year. The following information relates to current level of production of seats: Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative Fixed costs per unit: Manufacturing Marketing and administrative If a special sales order is accepted for 3,000 seats at a price of $30...
EQuestion Help Comfort Cloud manufactures seats for airplanes The company has the capacity to produce 100,000...
EQuestion Help Comfort Cloud manufactures seats for airplanes The company has the capacity to produce 100,000 seats per year, but cuendy produces and sells 75,000 seats per year The following informaion relates to cuent production Sales price per unit $440 Variable costs per unt Manulacturing Marketing and administrative $250 $50 Total fed coss Manufacturing Markeding and administrative s800.000 $200.000 IMa special sales order is accepted for 2.900 seats at a price of $310 per unit Exed costs increase by $6000...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product: Sale price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative $270 $60 Total fixed costs: Manufacturing Marketing and administrative $770,000 $240,000 If a special sales order is accepted for 7,500 seats at a price of $370 per unit, and...
Comfort Cloud 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 Marketing and administrative S220 $50 Total fixed costs: Manufacturing Marketing and administrative $750,000 $200,000 If a special sales order is accepted for 5,500 seats at a price of $325 per unit, fixed costs remain unchanged, and...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is cunently produces and sells 75.000 seats per year The following irnformation relates to curent production of seats Sale price per unit S420 Variable costs per unit Manufacturing Makeling and administrative $220 560 Tetal feed costs Manufacturing Marketing and administrative $780 000 $250 000 Ya special sales order is accepted for 3,400 seats at a price of 5310 per unt, and...
13. Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75.000 seats per year. The following information relates to current production: Sales price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative S80 Total fixed costs: Manufacturing Marketing and administrative $760,000 $220,000 If a special sales order is accepted for 2700 seats at a price of $350 per unit, fixed costs increase by $6600, and...
how do i solve
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100 000 as per year but is currently produces and sols 75.000 seats per year. The following information relates to current production of seats: Sale price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative $220 $50 Totalfixed costs Manufacturing $800,000 Marketing and administrative $230,000 If a special sales order is accepted for 3.100 seats at a price of $300...
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production: (Click the icon to view the data.) If a special sales order is accepted for 2,700 seats at a price of $350 per unit, fixed costs increase by $6,600, and variable marketing and administrative costs for that order are $1 per unit, how would operating income be...
Please answer using the information
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 10,600 seats per year, but is currently produces and sells 7,500 seats per year. The following information relates to current level of production of seats: Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative Fixed costs per unit: Manufacturing Marketing and administrative If a special sales order is accepted for 3,000 seats at a price of $30...
EQuestion Help Comfort Cloud manufactures seats for airplanes The company has the capacity to produce 100,000 seats per year, but cuendy produces and sells 75,000 seats per year The following informaion relates to cuent production Sales price per unit $440 Variable costs per unt Manulacturing Marketing and administrative $250 $50 Total fed coss Manufacturing Markeding and administrative s800.000 $200.000 IMa special sales order is accepted for 2.900 seats at a price of $310 per unit Exed costs increase by $6000...
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