The owen’s company budgeted sales of 45,000 printers at $95 per unit last year. variable manufacturing costs were budgeted at $42 per unit, and fixed manufacturing costs at $10 per unit. a special order for 1,500 printers at $75 each was received by owens in april. there is enough plant capacity to meet these additional units; however, the production would have to be done on an overtime basis at an estimated additional cost of $7 per printer. acceptance of the special order would not affect owen’s normal sales and no selling expenses would be incurred. what would be the increase (or decrease) to net operating income if the special order were accepted

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?