It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production which normally sells for OMR 35. A foreign wholesaler offers to purchase 3,000 units at OMR 15...


It costs Sohar Company OMR 12<br>of variable and OMR 5 of fixed<br>costs to produce one unit of<br>production which normally sells<br>for OMR 35. A foreign wholesaler<br>offers to purchase 3,000 units at<br>OMR 15 each. the company would<br>incur special shipping costs of<br>OMR 1 per unit if the order were<br>accepted. Assuming that the<br>company has the excess<br>operating capacity to produce the<br>3,000 units. If the special order is<br>accepted, what will be the effect<br>on net income?<br>Select one:<br>a. OMR 6,000 increase<br>b. OMR 9,000 decrease<br>O c. OMR 6,000 decrease<br>O d. OMR 45,000 increase<br>e. None of the answers are<br>correct<br>

Extracted text: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production which normally sells for OMR 35. A foreign wholesaler offers to purchase 3,000 units at OMR 15 each. the company would incur special shipping costs of OMR 1 per unit if the order were accepted. Assuming that the company has the excess operating capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income? Select one: a. OMR 6,000 increase b. OMR 9,000 decrease O c. OMR 6,000 decrease O d. OMR 45,000 increase e. None of the answers are correct

Jun 11, 2022
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