Canine Creations Company produces dog toys with a cost of $9 per unit ($6 variable and $3 fixed). This product normally sells to customers for $13 per unit. Chihuahua Inc., a foreign company, offers to purchase 3,000 units at $7 each. Canine Creations Company would incur $1.50 of special packaging and shipping costs if the order is accepted. Canine Creations Company has sufficient unused capacity to produce the 3,000 special-order units. If the special order is accepted, what will the effect be on the company's income?

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The Answer of Canine Creations Company produces dog toys with a cost of $9 per unit ($6 variable and $3 fixed). This product normally sells to customers for $13 per unit. Chihuahua Inc., a foreign company, offers to purchase 3,000 units at $7 each. Canine Creations Company would incur $1.50 of special packaging and shipping costs if the order is accepted. Canine Creations Company has sufficient unused capacity to produce the 3,000 special-order units. If the special order is accepted, what will the effect be on the company's income?

Canine Creations Company Produces Dog Toys with a Cost of $9