Question: Carney's most popular product has a unit variable manufacturing cost of $48, a unit fixed manufacturing cost of $5, a unit variable selling cost of
Carney's most popular product has a unit variable manufacturing cost of $48, a unit fixed manufacturing cost of $5, a unit variable selling cost of $3, and a unit selling price of $65. Carney has been approached with a one-time opportunity to sell 2,000 additional units for $60 each. Because the customer is a foreign wholesaler, these sales will not impact present sales but there will be additional shipping costs of $15,000.If Carney has sufficient capacity for the special order, what is the incremental net income of the special order?
- A:$15,000 decrease.
- B:$9,000 increase.
- C:$3,000 increase.
- D:$7,000 decrease.
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