Please put step by step. n relates to current production of outdoor chaise loung

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Please put step by step.

n relates to current production of outdoor chaise lounges at Backyard Posh: Variable manufacturing costs per u Total fixed manufacturing costs Variable marketing and administrative costs per unit Total fixed marketing and administrative costs $106 $525,000 $250,000 per chaise lounge is $300. The company is analyzing the opportunity to accept a special $33 The sales order for 400 regular selling price r unit lower than on regular sales. Fixed costs would increase by $14.000, The company has the capacity to 000 chaise lounges per year, but is currently producing and selling 13,000 chaise lounges per year chaise lounges at a price of $220 per unit. Variable marketing and administrative costs would be produce 25, operating income be affected? bperatns ies will be fed by the special order.If the company were to accept this special order. how would O A. Increase by $23,20o O B. Increase by $37,200 O C. Decrease by $37.200 O D. Decrease by $23,200

Explanation / Answer

Particulars Amount Amount Sales (400*220) 88000 Less: Variable cost variable manufacturing cost (400*106) 42400 Variable marketing and administrative cost (400*(33-12) 8400 -50800 Less: Fixed cost Increase in fixed cost -14000 Increase / decrease in operating income 23200 Option A is increase by 23200

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