Question: Buggin Company manufactures a product with a unit variable cost of $ 1 0 0 and a unit selling price of $ 1 9 0

Buggin Company manufactures a product with a unit variable cost of

Buggin Company manufactures a product with a unit variable cost of $

100

and a unit selling price of $

190 .

Fixed manufacturing costs were $

400000

when

10000

units were produced and sold. The company has a one

-

time opportunity to sell an additional

1000

units at $

130

each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, how would acceptance of the special order affect income?

Income would increase by $

130000 .

Income would increase by $

10000 .

Income would decrease by $

10000 .

Income would increase by $

30000 .

$100 and a unit selling price of $190. Fixed manufacturing costs were

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