#11

It costs Marigold Company $26 per unit ( $18 variable and $8 foved) to produce its product, which normally sells for $38 per unit. A forcign wholesaler offers to purchase 3400 units at $21 each. Marigold would incur special shipping costs of $2 per unit if the order were accepted. Marigold has sufficient unused capacity to produce the 3400 units. If the special order is accepted, what will be the effect on net income? $61200 increase $3400 increase $10200 increase $3400 decrease