Sunland Company incurs a cost of $35 per unit, of which $20 is variable, to make...

Transcribed Image Text:

Sunland Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,400 units at $30 each. Sunland will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Sunland will realize by accepting the special order, assuming Sunland has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs A Net income Reject A +A Accept Should Sunland Company accept the special order? Sunland company should the special order. Net Income Increase (Decrease) A +A $ Sunland Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,400 units at $30 each. Sunland will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Sunland will realize by accepting the special order, assuming Sunland has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs A Net income Reject A +A Accept Should Sunland Company accept the special order? Sunland company should the special order. Net Income Increase (Decrease) A +A $