Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are
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Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Waterloo has no excess capacity to accept a special order for 37,100 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Waterloo would realize by accepting the special order.
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