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A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Cost Information Cost Type Costs Direct
A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:
Cost Type | Costs |
---|---|
Direct Materials | $4 |
Direct Labor | $10 |
Variable Overhead | $8 |
Fixed Overhead | $6 |
A foreign company wants to purchase 2,200units at a special unit price of $25. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign companys name on the product. What is the incremental income (loss) from accepting the order?
Group of answer choices
($6,600)
($2,600)
$2,600
$6,600
($2,200)
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