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A company makes a single product that is normally sells for $62 /unit. It has the capacity to produce 100,000 units per year, but currently
A company makes a single product that is normally sells for $62 /unit. It has the capacity to produce 100,000 units per year, but currently produces only 70,000 . Per-unit costs associated with the product at an annual production level of 70,000 are below: A foreign distributor wants to buy 3,000 units and has offered to pay $42 each. Additional information: - If the company accepts this order, it would incur $9,000 in additional legal costs to comply with export regulations. - No selling costs would be incurred for this order. What would be the total financial impact of accepting this offer? (Make sure to calculate the total impact, not the per-unit amount. Use a negative number to indicate a decrease in cash flows.)
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