Planet Furniture, Inc

question 114

True/False

Planet Furniture, Inc. is currently producing well below its full capacity. The Swansea Company has approached Plant with an offer to buy 5,000 tools at $17.50 each. Planet sells its end table for $18.50 each; the average cost per unit is $18.30, of which $2.70 is fixed costs. If Planet accepts the order, the increase in operating income will be $7,500.