Question

Your answer is incorrect. Try again. The following operating information reports the results of Chappell Company's production and sale of 12,500 air-conditioned motoryde forecasts, Chappell expects the same results this year Variable marching expenses Pred manufacturing expenses Variable selling and administrative expenses Fixed selling and administrative expenses 51.920,000 550.000 222 300 128.000 224 DDO The American Hotorcyde Club has offered to purchase 1,500 helmets at a price of $100 each. Chappell has sufficientide capacity to fill the order, which would not affect the company's cost structure of regular sales If Chappell accepts this order by how much is income increase or decrease Operating Click if you would like to show Work for this question: Qen Show Work LINK TO TEXT

Answer 1

Variable manufacturing expense per unit	70.40	=880000/12500
Variable selling and administrative expense per unit	10.24	=128000/12500
Incremental sales revenue	150000	=1500*100
Incremental costs:
Variable manufacturing expenses	105600	=1500*70.40
Variable selling and administrative expenses	15360	=1500*10.24
Total Incremental costs	120960
Incremental profit	29040
Operating income will increase by $29040