Ag3-y4R Company has just obtained a request for a special order of 10,000 units to be...
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Ag3-y4R Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a selling price of $31 each. The company has a production capacity of 80,000 units per month. At present, the company is selling 78,000 units per month through regular channels at a selling price of $36 each. For these regular sales, the cost for one unit is: variable production costs fixed production costs variable selling expenses $7.80 $4.70 $3.80 Ag3-y4R Company will not incur any selling expenses on the special order units. However, the special order units will require an additional shipping cost of $0.60 per unit. Calculate the amount by which Ag3-y4R Company's net income will increase if they accept the special order. Ag3-y4R Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a selling price of $31 each. The company has a production capacity of 80,000 units per month. At present, the company is selling 78,000 units per month through regular channels at a selling price of $36 each. For these regular sales, the cost for one unit is: variable production costs fixed production costs variable selling expenses $7.80 $4.70 $3.80 Ag3-y4R Company will not incur any selling expenses on the special order units. However, the special order units will require an additional shipping cost of $0.60 per unit. Calculate the amount by which Ag3-y4R Company's net income will increase if they accept the special order.
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