Bulger Corporation has been producing and selling 40,000 hats a year. The Bulger Corporation has the capacity to produce 50,000 hats with its present facilities. The following information is also available: $$\begin{array} { l l }
\text { Selling price per unit } & \$ 30 \
\text { Variable costs per unit: } & \
\text { Manufacturing } & 11 \
\text { Selling and A dminis trative } & 5 \
\text { Fixed costs in total: } & \
\text { Manufacturing } & \$ 128,000 \
\text { Selling and A dminis trative } & 56,000
\end{array}$$ If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would:

Question

Bulger Corporation has been producing and selling 40,000 hats a year. The Bulger Corporation has the capacity to produce 50,000 hats with its present facilities. The following information is also available: $$\begin{array} { l l } 
\text { Selling price per unit } & \$ 30 \
\text { Variable costs per unit: } & \
\text { Manufacturing } & 11 \
\text { Selling and A dminis trative } & 5 \
\text { Fixed costs in total: } & \
\text { Manufacturing } & \$ 128,000 \
\text { Selling and A dminis trative } & 56,000
\end{array}$$ If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would:

Quizplus · Accepted Answer

The Answer of Bulger Corporation has been producing and selling 40,000 hats a year. The Bulger Corporation has the capacity to produce 50,000 hats with its present facilities. The following information is also available: $$\begin{array} { l l } 
\text { Selling price per unit } & \$ 30 \
\text { Variable costs per unit: } & \
\text { Manufacturing } & 11 \
\text { Selling and A dminis trative } & 5 \
\text { Fixed costs in total: } & \
\text { Manufacturing } & \$ 128,000 \
\text { Selling and A dminis trative } & 56,000
\end{array}$$ If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would:

Bulger Corporation Has Been Producing and Selling 40,000 Hats a Year