Maxi also incurs selling and administrative expenses of $73,600 plus $3 per pair for sales commissions. The

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Question:

Maxi also incurs selling and administrative expenses of $73,600 plus $3 per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in manufacturing the sunglasses. Maxi's normal price for these sunglasses is $42 per pair. The sporting goods store has offered to pay $32 per pair. Since the special order was initiated by the sporting goods store, no sales commission will be paid.

What would be the effect on Maxi's income if the special order were accepted:

Maxi's income will ( Increase or Decrease )

Maxi's income will increase/decrease by how much?