Question: ABC Company has received a request for a special order of 8.000 units, and the potential custorner has offered to pay $15 per unit. Currenthy.
ABC Company has received a request for a special order of 8.000 units, and the potential custorner has offered to pay $15 per unit. Currenthy. ABC Company is producing 56,000 units per monath and the product usually sells. for $22 per unit. For these 56,000 units, the cost per unit is as follows If ABC Company accepts the order, it will save $3 in variable selling and administrative expenses per unit for the 8,000 units in the special order. Assuming that ABC Company has a production capacity of 56.000 units monthly, what would be the ffect on profitability of accepting the special order? Decrease in profitability of $56.000 Decrease in profitability of $50,400 Decrease in profitability of $32,000 Decrease in profitability of $8.000 None of the above
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