Wright Corporation's Contribution Format Income Statement for Last Month Appears

question 139

Multiple Choice

Wright Corporation's contribution format income statement for last month appears below:
$\begin{array} {| l | r | } \hline \text { Sales } & \$ 45,000 \\\hline \text { Less: variable expenses } & \underline { 27,000 } \\\hline \text { Contribution margin } & 18,000 \\\hline \text { Less: fixed expenses } & \underline { 12,000 } \\\hline \text { Operating income } & \$ 6,000 \\\hline\end{array}$ 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 800 units if it is willing to drop the selling price on these units to $13.Costs of securing the special order would be $1,000.The special order would not affect the company's regular sales.If the special order is accepted,what will be the impact on the company's overall operating income?

• A) Increase $3,200.
• B) Increase $2,200.
• C) Increase $3,800.
• D) Remain the same.

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Definitions:

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