Question: In Kastle Company, it costs $30 per unit ($20 variable and $10 fixed) to make a product that normally sells for $45. A foreign wholesaler

In Kastle Company, it costs $30 per unit ($20 variable and $10 fixed) to make a product that normally sells for $45. A foreign wholesaler offers to buy 4,000 units at $23 each. Kastle will incur special shipping costs of $1 per unit. Assuming that Kastle has excess operating capacity, prepare an incremental analysis that indicates the net income (loss) Kastle would realize by accepting the special order. Should the order be accepted?

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