Multiple Choice
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: 
If a special sales order is accepted for 2800 widgets at a price of $36 per unit, fixed costs increase by $9000, and variable marketing and administrative costs for that order are $3 per unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
A) Increase by $28,000
B) Decrease by $19,000
C) Increase by $19,000
D) Increase by $27,400
Correct Answer:
Verified
Correct Answer:
Verified
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