Figure 9-8
Walton Company Manufactures a Product with the Following

Multiple Choice

Figure 9-8
Walton Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: $\begin{array}{lr}\text { Direct materials } & £ 12 \\\text { Direct labour } & 36 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 24\end{array}$ The company has the capacity to produce 90,000 units. The product regularly sells for £120.
-Refer to Figure 9-8. A wholesaler has offered to pay £110 a unit for 7,500 units. If the special order is accepted, the effect on operating income would be a

A) £75,000 decrease.
B) £429,000 increase.
C) £495,000 increase.
D) £249,000 increase.