Question: Use this information for Falcon Co. to answer the question that follow. Falcon Co. produces a single product. Its normal selling price is $30 per
Use this information for Falcon Co. to answer the question that follow. Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $19 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon 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 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $1 per unit would be eliminated. If the order is accepted, what would be the impact on net income? Os increase of $1.500 Ob. decrease of $4,500 Oc. decrease of $750 Od increase of 53,000
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