If Varone can expect to sell 32,000 Homs next year through regular channels and the special order is accepted at 15% off the regular selling price,the effect on net operating income next year due to accepting this order would be a:
A) $24,000 decrease.
B) $52,000 increase.
C) $68,000 increase.
D) $80,000 increase.

Question

Quizplus · Accepted Answer

The special order increases sales without affecting regular sales, and the discount is offset by the contribution margin, leading to a net increase in operating income.

If Varone Can Expect to Sell 32,000 Homs Next Year