Question: A companys unit costs based on 100,000 units are: Variable costs $50 Fixed costs 20 The normal unit sales price per unit is $110. A
A companys unit costs based on 100,000 units are:
Variable costs $50
Fixed costs 20
The normal unit sales price per unit is $110. A special order from a foreign company has been received for 5,000 units at $90 a unit. In order to fulfill the order, 3,000 units of regular sales would have to be foregone.
What is the incremental profit (loss) from accepting the order would be?
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