Sky High Seats manufactures seats for airplanes. The company has the capacity to produce? 100,000 seats per? year, but is currently produces and sells? 75,000 seats per year. The following information relates to current production of? seats:
Sale price per unit
?$400
Variable costs per? unit:
Manufacturing
?$220
Marketing and administrative
?$50
Total fixed? costs:
Manufacturing
?$750,000
Marketing and administrative
?$200,000
If a special sales order is accepted for? 2,500 seats at a price of? $320 per? unit, fixed costs increase by? $5,000, and variable marketing and administrative costs for that order are? $25 per? unit, how would operating income be? affected? (NOTE: Assume regular sales are not affected by the special? order.)
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Sky High Seats manufactures seats for airplanes. The company has the capacity to produce? 100,000 seats per? year, but is currently ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face?
Answers (2)
When evaluating multiple alternatives or projects, against what must they be compared, if they are (a) independent, and (b) mutually exclusive
Answers (1)
A person who desires high income from an investment would be most concerned with?
Answers (1)
On January 1, Pacer Corporation issued $2000000, 13%, 5-year bonds with interest payable on January 1. The bonds sold for $2197080. The market rate of interest for these bonds was 11%.
Answers (1)
If a company is concerned about lending money to a risky customer, which one of the following would it not want to do? Require the customer to pay cash in advance. Provide the customer a lengthy payment period to increase the chance of paying.
Answers (1)
New Questions in Business
Gontier corporation stock currently sells for $64.18 per share. the market requires a return of 12 percent on the firm's stock. required: if the company maintains a constant 5.
Answers (1)
If someone asked you, "Why should I bother worrying about my credit score?" what would you say?
Answers (1)
Hall and Donnell reported findings of five separate studies involving over 12,000 managers that explored the relationship between managerial achievement and attitudes toward subordinates.
Answers (1)
On September 1, 2021, Daylight Donuts signed a $188,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2022.
Answers (1)
When the Central Bank acts in a way that causes the money supply to increase while aggregate demand remains unchanged, it is A) following an expansionary monetary policy. B) following a contractionary monetary policy.
Answers (1)