Visionary Game Company sells 600,000 units per year of a particular video game at $20 each. The current unit cost of the game is broken down as follows. Direct materials $5.00
Direct labor 2.00
Variable factory overhead 4.00
Fixed factory overhead (average cost per unit) 3.00
Total $14.00

At the beginning of the current year, Visionary received a special order for 12,000 of these games per month, for one year only, at a sales price of $11 per unit. To fill the order, Visionary will have to rent additional assembly space at a cost of $18,000 ($1,500 per month).

Required:
Compute the estimated increase or decrease in annual operating income that will result from accepting this special order.

Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. what effect would this have on the department's net income or net loss? (ignore income tax in your calculations.) use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. sales $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer