Question: Managerial, 8e Practice 7.2: Analyze the relevant costs in accepting an orde... Q 7.29: Garnet Companys most popular product has a unit variable cost of
Managerial, 8e Practice 7.2: Analyze the relevant costs in accepting an orde... Q 7.29: Garnet Companys most popular product has a unit variable cost of $40 and a unit selling 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 additional units for $56 each, Because the customer is a foreign wholesaler, these sales will not impact present sales. If Garnet has sufficient capacity for the special order, how much will net income change as a result of accepting the special order? A $14,400 decrease. B $16,000 increase. C $3,200 decrease. D $56,000 increase
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