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Martin Incorporated Provided the Following Information Regarding Its Only Product

Question 178

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Martin Incorporated provided the following information regarding its only product: Martin Incorporated provided the following information regarding its only product:   Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3500 units at a sale price of $41 per product assuming additional fixed manufacturing overhead costs of $5100 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)  A) Increase by $143,500 B) Decrease by $75,225 C) Increase by $75,225 D) Increase by $80,325 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3500 units at a sale price of $41 per product assuming additional fixed manufacturing overhead costs of $5100 is incurred? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.)


A) Increase by $143,500
B) Decrease by $75,225
C) Increase by $75,225
D) Increase by $80,325

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