Waterway Company manufactures a product with a unit variable cost of $41 and a unit sales price of $74 Fixed manufacturing costs were $80200 when 8020 units were produced and sold, equating to $10 per unit. The company has a one-time opportunity to sell an additional 1200 units at $56 each in an international market, which would not affect its present sales. The company has suffcient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?

Answer rating: 100% (QA)

To calculate the relevant income effect of accepting the special order we need to analyze the increm... View the full answer