Question

The Owen’s Company budgeted sales of 45,000 printers at $95 per unit last year. Variable manufacturing costs were budgeted at $42 per unit, and fixed manufacturing costs at $10 per unit. A special order for 1,500 printers at $75 each was received by Owens in April. There is enough plant capacity to meet these additional units; however, the production would have to be done on an overtime basis at an estimated additional cost of $7 per printer. Acceptance of the special order would not affect Owen’s normal sales and no selling expenses would be incurred. What would be the increase (or decrease) to net operating income if the special order were accepted

Answer 1

That’s a tuff one I wish I could help but that stumped me lol