The following information relates to the Jax Company for the upcoming year. The cost of goods sold includes $2,400,000 of fixed manufacturing overhead;the operating expenses include $200,000 of fixed marketing expenses.A special order offering to buy 50,000 units for $15.00 per unit has been made to Jax.Fortunately,there will be no additional operating expenses associated with the order;however,Jax is operating at full capacity.How much will operating profits increase if Jax accepts the special order?
A)$50,000.
B)$125,000.
C)$200,000.
D)$250,000.
E)Operating profits will not increase as a result of accepting the special order.

Question

The following information relates to the Jax Company for the upcoming year.  The cost of goods sold includes $2,400,000 of fixed manufacturing overhead;the operating expenses include $200,000 of fixed marketing expenses.A special order offering to buy 50,000 units for $15.00 per unit has been made to Jax.Fortunately,there will be no additional operating expenses associated with the order;however,Jax is operating at full capacity.How much will operating profits increase if Jax accepts the special order?
A)$50,000. 
B)$125,000. 
C)$200,000. 
D)$250,000. 
E)Operating profits will not increase as a result of accepting the special order.

Quizplus · Accepted Answer

The Answer of The following information relates to the Jax Company for the upcoming year.  The cost of goods sold includes $2,400,000 of fixed manufacturing overhead;the operating expenses include $200,000 of fixed marketing expenses.A special order offering to buy 50,000 units for $15.00 per unit has been made to Jax.Fortunately,there will be no additional operating expenses associated with the order;however,Jax is operating at full capacity.How much will operating profits increase if Jax accepts the special order?
A)$50,000. 
B)$125,000. 
C)$200,000. 
D)$250,000. 
E)Operating profits will not increase as a result of accepting the special order.

The Following Information Relates to the Jax Company for the Upcoming