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The woody company manufactures slipper and sells them at 10

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The Woody Company manufactures slipper and sells them at $10 a pair. Variable manufacturing costs are $4.50 a pair, and allocated fixed manufacturing costs are $1.50 a pair. It has enough idle capacity available to accept a one-time-pnly special order of 20,00 pairs of slippers at $6 a pair. Woody would not incur any marketing costs a s a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales?

Reference no: EM13573303

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