Kingbird Co. sells product P-14 at a price of $46 a unit. The per-unit cost data are direct materials $15, direct labor $12, and overhead $16 (75% variable). Kingbird Co. has sufficient capacity to accept a special order for 38,100 units but at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Determine whether Kingbird Co. should accept the special order. (Enter loss with a negative sign preceding the number, e.g.-15,000, or parenthesis, e.g. (15,000).)
What is the Incremental income (loss) $___________________?
Kingbird Co. should not accept the special order.

Answer rating: 100% (QA)

To determine whether Kingbird Co should accept the special order we need to calculate the incrementa... View the full answer