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Stangle Company Manufactures Ties

Question 66

Essay

Stangle Company manufactures ties.When 28,000 ties are produced,the costs per unit are:
Stangle Company manufactures ties.When 28,000 ties are produced,the costs per unit are: The ties normally sell for $22 each.The company has received a special order for 2,000 ties at $10.00 per tie.The company has excess capacity. Required: Compute the amount by which the operating income would change if the order were accepted. The ties normally sell for $22 each.The company has received a special order for 2,000 ties at $10.00 per tie.The company has excess capacity.
Required:
Compute the amount by which the operating income would change if the order were accepted.

Correct Answer:

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