Wright Corporation's contribution format income statement for last month appears below.
|
Sales
|
$ 75,000
|
|
Variable expenses
|
33,000
|
|
Contribution margin
|
42,000
|
|
Fixed expenses
|
15,000
|
|
Net operating income
|
$ 27,000
|
|
There were no beginning or ending inventories. The company produced and sold 3,000 units during the month.
|
The company has an opportunity to secure a special order of 850 units if it is willing to drop the selling price on these units to $23. Costs of securing the special order would be $1,100. The special order would not affect the company's regular sales. If the special order is accepted, the company's overall net operating income will: (Do not round intermediate calculations.)
|
a)increase by $10,200
|
|
b)
|
increase by $9,100
|
|
c)increase by $3,850
|
|
d)
|
remain the s
|