Question
1. Philip inc. Incurs costs of $280 per unit ($180 variable and $100 fixed) to make a pen that normally sells*for $420. A foreign wholesaler
1. Philip inc. Incurs costs of $280 per unit ($180 variable and $100 fixed) to make a pen that normally sells*for $420. A foreign wholesaler offers to buy 5,000 units at $250 each. The special order results in additional shipping costs of $10 per unit. Compute the increase or decrease in net income Philip Inc. realizes by accepting the special order, assuming Phillip Inc. has excess operating capacity. (Please just give me the answer, without any symbols such as signs, commas, etc) 2. A company's unit costs based on 100,000 units are: Variable costs $75 Fixed costs The normal unit sales price per unit is $165. A special order from a foreign company has been received for 5,000 units at $135 a unit. In order to fulfill the order. 3,000 units of regular sales would have to be foregone. The opportunity cost associated with this order is 3. Martin Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392.000 Martin has received a special order from a foreign company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,300 for shipping. If Martin wants to earn $6,000 on the order, what should the unit price be?
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