A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:
A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is
A) $6,000.
B) $2,000.
C) $(6,000) .
D) $(2,000) .
Correct Answer:
Verified
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