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. If a wholesaler offered to buy 4,500 units for £100 each, the effect of the special order on income would be a

A) £153,000 increase.
B) £45,000 increase.
C) £450,000 increase.
D) £90,000 decrease.