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ABC Company has received a request for a special order of 8,000 units, and the potential customer has offered to pay $15 per unit. Currently,
ABC Company has received a request for a special order of 8,000 units, and the potential customer has offered to pay $15 per unit. Currently, ABC Company is producing 56,000 units per month and the product usually sells for $22 per unit. For these 56,000 units, the cost per unit is as follows: If ABC Company accepts the order, it will save $3 in varlable selling and administrative expenses per unit for the 8,000 units in the special order. Assuming that ABC Company has a production capacity of 56,000 units monthly, what would be the effect on profitability of accepting the special order? Decrease in profitability of $56,000 Decrease in profitability of $50,400 Decrease in profitability of $32,000 Decrease in profitability of $8,000 None of the above
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