Question

If a special sales order is accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain unchanged, what would the effect on operating income be

Answer 1

If a special sales order is accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain unchanged,the effect on operating income be Increase by $225,000. Since fixed costs remain unchanged, operationg income would increase. If fixed costst remain changed, operationg income would decrease.