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WileyPLUS Chegg Study l Guided Solutio × e-c secure Https://edugen. , × × c secure https://edugen.wileyplus.com/edugen/student/mainfr.u ni WileyPLUS Kimmel Accounting, 6 INTRODUCTORY ACCOUNTING I/II (ACT 221/222) Home Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook Assignment>open Assignment TIMER Start Time: 02:00 PM/ Remaining: 33 min. CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Question 1 Sheffield Corp. manufactures a product with a unit variable cost of $100 and a unit sales price of $186. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows: 18-19-20 a Question 1 Question 2 Question 4 Income would increase by $40000. Income would increase by $8000. Income would increase by $140000 Income would decrease by $8000 Question 5 Question Question 7 Question Question 9 Question 10 Question 11 Click if you would like to Show Work for this question: Question13 Question 14 Question 15 Question Attempts: 0 of 1 usedSAVE FOR LATER SUBMIT ANSWER Question 20 Question 25 Inc All Rights Reserved. A Division of lohn Wiley & Sons Inc Version 4.24.2.4 https:l/edugen.wileyplus.comledugen/shared/assignment/test/aglist.uni?id

Explanation / Answer

Note for understanding : In case of special order fixed cost which anyways incurred for normal production is to be ignored for calculating the profitability from special order

Revelant Cost for per unit of special order = Variable Cost = $100

Selling price per unit = $140

Total Profit from special order = ($140 - $100) * 1000 units = $40,000

Therefore by acceptance of special order the Income would increse by $40,000 (ie option a)

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