Wiacek Corporation Has Received a Request for a Special Order

question 62

Multiple Choice

Wiacek Corporation has received a request for a special order of 4,000 units of product F65 for $26.60 each.Product F65's unit product cost is $25.80,determined as follows:
Direct labor is a variable cost.The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to product F65 that would increase the variable costs by $3.00 per unit and that would require an investment of $23,000 in special molds that would have no salvage value.
This special order would have no effect on the company's other sales.The company has ample spare capacity for producing the special order.If the special order is accepted,the company's overall net operating income would increase (decrease) by:

• A)$(31,800)
• B)$3,800
• C)$3,200
• D)$(48,400)

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Definitions:

Adventitia/Serosa

The adventitia or serosa is the outermost layer of an organ in the abdominal cavity, consisting of connective tissue covered by mesothelium.

Periodontal Ligament

A group of specialized connective tissue fibers that attach a tooth to the surrounding alveolar bone, playing a crucial role in the shock absorption during chewing.

Root Canal

A dental procedure to remove infected material and relieve pain from the soft core (dental pulp) of a tooth.

Dentin

A hard, dense, bony tissue forming the bulk of a tooth beneath the enamel.