Extra Company has offered to purchase 3,500 IT-54s at $17 each. Brilliant has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $18. Which of the following correctly notes the change in income if the special order is accepted?

Sales	$528,000
Variable manufacturing costs	288,000
Fixed manufacturing costs	120,000
Variable selling costs	52,800
Fixed administrative costs	35,200

Answer rating: 100% (QA)

Answer Change in Income 12000 increase Working Variable manufactu... View the full answer