Question

Byways Production has an annual capacity of 80,000 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $100 per unit; variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,000 units at $75 per unit.
Byways' cost structure should not change as a result of this special order.

Required
By how much will Byways' income change if the company accepts this order?



$1.99
Sales4
Views212
Comments0
  • CreatedFebruary 21, 2014
  • Files Included
Post your question
5000