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A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10000 units: Direct materials $ 4 Direct labor

A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10000 units:

Direct materials $ 4
Direct labor 10
Variable overhead 8
Fixed overhead 6

A foreign company wants to purchase 2200 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 $4000 in order to stamp the foreign companys name on the product. The incremental income (loss) from accepting the order is

$(6600).

$(2200).

$6600.

$2600.

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