Yorkville sells a haircutter at $65 and each unit has variable cost of $25. Yorkville’s fixed manufacturing costs are $80,000 when produces at its full capacity of 10,000 units and its its fixed cost per unit is $8 per unit. The company has an offer of 2,000 units at $30 each in an international market, which would not affect its current production but would increase the fixed cost by $$5,000. How much is the incremental net income if it accepts the special order?

Select one:

a. $10,000 profit

b. $6,000 loss

c. $5,000 profit

d. $70,000 loss

Answer rating: 100% (QA)

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