Question: Jack Ltd received a special order from a supplier for 5000 units of a product that sells at $30 per unit. The incremental variable cost

Jack Ltd received a special order from a supplier for 5000 units of a product that sells at $30 per unit. The incremental variable cost is $90 000. The company expects to save $5000 in ordering and other communication costs. If Jack Ltd agrees to the special order, it will forgo $55 400 in lost sales. What is the contribution from the special order?

		$90 000
		a loss of $4600
		$55 400
		$9600

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