Question: Incremental Analysis - Special Order Purdy's Chocolates is considering a special order to sell 1,000 units of their 50gram assorted chocolate box. They have the
Incremental Analysis - Special Order Purdy's Chocolates is considering a special order to sell 1,000 units of their 50gram assorted chocolate box. They have the capacity and the order will not impact their prices in their regular market. The details are as follows: Order selling price - $15 per box Normal selling price - $20 per box Variable costs per box - $12 Fixed costs per box - $4 Selling costs associated with this order $1 per box Should Purdy's accept the order? Show all your work and show the overall impact on net income as part of your answer. Use either the graph method or the incremental calculation method - either method is acceptable. 7
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