Question: Current Attempt in Progress It costs Marigold Corp. $ 1 2 of variable and $ 5 of fixed costs to produce one scale which normally

 Current Attempt in Progress It costs Marigold Corp. $12 of variable
Current Attempt in Progress
It costs Marigold Corp. $12 of variable and $5 of fixed costs to produce one scale which normally sells for $44. A foreign wholesaler offers to purchase 4400 scales at $15 each. Marigold Corp. would incur special shipping costs of $1 per scale if the order were accepted. Marigold has sufficient unused capacity to produce the 4400 scales. If the special order is accepted, what will be the effect on net income?
$8800 increase
$8800 decrease
$52800 decrease
$66000 increase
and $5 of fixed costs to produce one scale which normally sells

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!