It costs Swifty Corporation $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2200 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Swifty has sufficient unused capacity to produce the 2200 scales. If the special order is accepted, what will be the effect on net income?

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Answer Option C 4400 Working Incremental analysis ... View the full answer