The company has an opportunity to secure a special order of

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Reference no: EM13571140

Wright Corporation's contribution format income statement for last month appears below.

Sales	$ 75,000
Variable expenses	33,000
Contribution margin	42,000
Fixed expenses	15,000
Net operating income	$ 27,000

There were no beginning or ending inventories. The company produced and sold 3,000 units during the month.

The company has an opportunity to secure a special order of 850 units if it is willing to drop the selling price on these units to $23. Costs of securing the special order would be $1,100. The special order would not affect the company's regular sales. If the special order is accepted, the company's overall net operating income will: (Do not round intermediate calculations.)

a)increase by $10,200
b)	increase by $9,100
	c)increase by $3,850
d)	remain the s

Reference no: EM13571140

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