It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200

Question:

It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30.

A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capacity, net income will:

(a) decrease $6,000.

(c) increase $12,000.

(b) increase $6,000.

(d) increase $9,000.

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