At Pardo Electronics, it costs $270 per unit to make a cell phone that normally sells for $730. Of $270, direct materials cost $95 per unit, direct labor costs $20 per unit, variable manufacturing overhead costs $35 per unit, and fixed manufacturing overhead costs $120 per unit. A foreign wholesaler offers to buy 1,050 units at $525 each. Pardo Electronics will incur special shipping costs of $15 per unit. Assuming that Pardo Electronics has excess operating capacity, indicate the net income (loss) Pardo Electronics would realize by accepting the special order.

	Reject Order	Accept order	net income increase (decrease)
revenues	0	551,250.00	551,250.00
variable manufacturing costs	0	157,500.00	(157,500.00)
shipping cost / other cost	0	15,750.00	(15,750.00)
net icome / (loss)	0	378,000.00	378,000.00

should you reject or accept the order?

accept

Hello, my question is I wanted to know how my professor got the "net income increase (decreases) column?" Can you please specify how some are negative and some are positive? Because I would think they would all be negative because they are subtracted by 0. Please Help Me better Understand This. Thank You.