Business, 15.04.2020 20:43 davisparker5269

Watson Company produces sunglasses. The price and cost information are as follows: Selling price per unit $14/unit Variable Manufacturing Costs (DM, DL, VOH) $3/unit Variable Operating Expenses $2/unit Fixed manufacturing overhead $121,000 Fixed operating expenses $86,000 Wellington Corp. has offered Watson $4 per unit for a special order of 5,500 sunglasses. Acceptance of the special order will not increase Watson's variable operating expenses, and fixed costs would remain unchanged. Watson has available capacity to fulfill the order. Should Watson accept the special order?A. Yes, accepting the special order would increase its operating income by $60,500
B. No, accepting the special order would decrease its operating income by $5,500
C. No, accepting the special order would decrease its operating income by $60,500
D. Yes, accepting the special order would increase its operating income by $5,500

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Watson Company produces sunglasses. The price and cost information are as follows: Selling price per...

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