Business
Business, 11.11.2019 19:31, money2tymes

Blue technologies manufactures and sells dvd players. great products company has offered blue technologies $22 per dvd player for 10,000 dvd players. blue technologies' normal selling price is $30 per dvd player. the total manufacturing cost per dvd player is $18 and consists of variable costs of $14 per dvd player and fixed overhead costs of $4 per dvd player. (note: assume excess capacity and no effect on regular sales.)

should blue technologies accept or reject the special sales order?

a) accept, because operating income would increase $360,000.

b) reject, because operating income would decrease $80,000.

c) accept, because operating income would increase $80,000.

d) reject, because operating income would decrease $160,000.

answer
Answers: 1

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