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Alli's Broom Company is within plant capacity. A special order for brooms in New Zealand, a new market comes in. They do not do business

Alli's Broom Company is within plant capacity. A special order for brooms in New Zealand, a new market comes in. They do not do business in New Zealand, so this will not impact their regular sales. What will happen if this special order is accepted?

Question 5 options:

There are no incremental revenues

Both fixed and variable costs will increase

Net income will increase if the special sales price per unit exceeds the unit variable costs

Incremental costs will not be affected

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