Ambassadors Incorporated produces a product with a per unit selling price of $90 and variable cost of
Fantastic news! We've Found the answer you've been seeking!
Question:
Ambassadors Incorporated produces a product with a per unit selling price of $90 and variable cost of $50. Fixed manufacturing overhead costs are $120,000. The firm has a one-time opportunity to sell an additional 2,500 units at $75 each that would not affect its current sales. Assuming the company has sufficient capacity to produce the additional units, how would the acceptance of the special order affect net income?
Income would decrease by $30,000.
Income would increase by $62,500.
Income would increase by $80,000.
Income would increase by $180,000.
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
Posted Date: