Question
9. A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct materials $ 5 Direct
9. A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct materials $ 5 Direct labor 15 Variable overhead 6 Fixed overhead 6 A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is a. $6,000. b. $2,000. c. $(6,000). d. $(2,000).
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