Question: Your answer is partially correct. Try again. Pina Colada Manufacturing has an annual capacity of 80,800 units per year. Currently, the company is making and

Your answer is partially correct. Try again. Pina Colada Manufacturing has an annual capacity of 80,800 units per year. Currently, the company is making and selling 78,200 units a year. The normal sales price is $108 per unit, variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,200 units at $75 per unit. Pina Colada's cost structure should not change as a result of this special order. By how much will Pina Colada's income change if the company accepts this order? come win7 decrease :) by 52,000 J if it accepts the special order. 52,000) ir it accepts the special order. Pina Colada' net income will l decrease by $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
