Started: Jun 20 at 1025am Quiz Instructions 1 pts Df Question 5 can manufacture

Question

Started: Jun 20 at 1025am Quiz Instructions 1 pts Df Question 5 can manufacture 1,200,000 calculators a year at a variable cost of $3,000,000 and a Bell Corporation manufacturers solar-powered calculators. Th fixed cost of $1,800.000. Based on management's projections for next year, 960,000 calculators will be sold at the regular price o has been received for 240,000 calculators to be sold a increase in net operating income if the special order is accepted? e company t a 70% discount off the regular price. Total fixed costs would be unaffected by this order, what is the o $1,440000 $600,000 $840,000 $480,000 Previous Next. Not savedSubmit Quiz

Explanation / Answer

Unit variable cost = 3000000/1200000= $2.5 Unit sales price = 20*(1-0.7)= $6 Increase in operating income = 240000*(6-2.5)= $840000 Option 3 is correct

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