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,what will be the impact on the company's overall operating income?
A) Increase $3,200.
B) Increase $2,200.
C) Increase $3,800.
D) Remain the same.Incremental profit = 800 * (13 - 9) - 1,000 = $2,200 increase
Correct Answer:
Verified
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