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Inscribe,Inc

question 175

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Inscribe,Inc.manufactures and sells pens for $7 each.Cubby Corp.has offered Inscribe,Inc.$4 per pen for a one-time order of 3500 pens.The total manufacturing cost per pen,using absorption costing,is $1 per unit and consists of variable costs of $0.85 per pen and fixed overhead costs of $0.15 per pen.Assume that Inscribe,Inc.has excess capacity and that the special pricing order would not adversely affect regular sales.What is the change in operating income that would result from accepting the special pricing order?

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Definitions:

Uniform State Code

A standardized set of laws and regulations adopted by some states to ensure consistency across various legal jurisdictions within the United States.

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A document offering recommendations and detailed advice on a particular topic, often used in legal and business contexts.

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A legal case brought to a court of law in which one party sues another for a wrongdoing or dispute resolution.

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