Question: please show as much work as possible and please explain. If the company chose to accept the order, what would the impact be on net
19. A highly reputable company produces a single product. Its normal selling price is $30.00 per unit. The variable costs are $19.00 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. This company received a request for a special order that would not interfere with normal sales. The order was for 1,500 units with a special price of $20.00 per unit. The company has the capacity to handle the special order, and for this order, a variable selling cost of $1.00 per unit would be eliminated. If the company chose to accept the order, what would the impact be on net income? Show your work in a differential analysis. If the order is accepted, what would be the impact on net income? 5 POINTS
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
