Question: Garnet Company's most popular product has a unit variable cost of $40 and a unit sales price of $70.40. Fixed manufacturing costs are $192,000 when
Garnet Company's most popular product has a unit variable cost of $40 and a unit sales price of $70.40. Fixed manufacturing costs are $192,000 when the company produces and sells 10,000 units. Garnet has been approached with a one-time opportunity to sell 1,000 more units for $56 each. Because the customer is a foreign wholesaler, these sales will not impact present sales. If Garnet has sufficient capacity, How much will net income change as a result of the special order?
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