The company has an opportunity to secure a special order of 800 units if it is willing to drop the selling price on these units to $13.Costs of securing the special order would be $1,000.The special order would not affect the company's regular sales.If the special order is accepted,the company's overall net income will:

Question

Quizplus · Accepted Answer

The increase in net income is calculated as follows: (Selling price per unit - Variable cost per unit) * Number of units - Additional costs = ($13 - $10) * 800 - $1,000 = $2,200.

The Company Has an Opportunity to Secure a Special Order