Question: A company has two product lines: candy and chips. Information for the month of June is presented below: Candy Chips Units sold 5,000 8,000 Revenue
A company has two product lines: candy and chips. Information for the month of June is presented below:
| Candy | Chips | |
| Units sold | 5,000 | 8,000 |
| Revenue | $7,500 | $16,000 |
| Variable costs | 4,000 | 8,800 |
| Fixed costs | 2,000 | 2,000 |
| Net income (loss) | $1,500 | $ 5,200 |
A potential new customer has asked to buy 1,000 candy products and 1,500 chips products at 80% of the price paid by other customers.
Can I please get assistance on how to prepare an incremental analysis that will help the managers decide whether to accept the order from the customer? Thank you
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