b) c) d) e) (3 000) $ (7 800 $) $ aucune des réponses ci-dessus 9. The following

Question

b) c) d) e) (3 000) $ (7 800 $) $ aucune des réponses ci-dessus 9. The following are from the accounting records of Y ltd.: 80 $ 120 000 180 000 $ 112 000 $ Sale price per unit DM used DL MO variable MO fixed S&A; variable S&A; fixed Production and sales (units) 168 000$ 48 000 $ 32 000 $ 10 000 An order has been received from an overseas customer for 2,000 units at a price of $64 per unit to be delivered this month By how much would this special order increase (decrease) the company's operating income for the month? a) ($32 000) b) $46,600 c) $12,000 d) $36,000 e) None of the above

Explanation / Answer

Incremental analysis :

so answer is d) $36,000

Incremental revenue (2000*64) 128000 Incremental cost Direct material (12*2000) 24000 Direct labour (18*2000) 36000 MO Variable (11.2*2000) 22400 SA Variable (4.8*2000) 9600 Total incremental cost 92000 Incremental profit 36000

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