Corn Company incurs a cost of $35.00 per unit, of which $20.10 is variable, to make a product that normally sells for $58.50. A foreign wholesaler offers to buy 6,000 units at $30.70 each. Corn will incur additional costs of $2.10 per unit to imprint a logo and to pay for shipping.

Calculate the increase or decrease in net income Corn will realize by accepting the special order, assuming Corn has sufficient excess operating capacity. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

		Net Income Increase (Decrease)
Incremental revenue		$enter a dollar amount
Incremental cost		enter a dollar amount
Increase (decrease) in net income		$enter a total amount

Should Corn Company accept the special order?

Corn Company should select an option reject accept the special order.

Answer rating: 100% (QA)

Particulars Net Income Increase Decrease I... View the full answer