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ASSUMPTIONS: Assume special order is a SHORT TERM decision so it is NOT necessary to allocate the fixed costs or overhead to Assume sales of

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ASSUMPTIONS: Assume special order is a SHORT TERM decision so it is NOT necessary to allocate the fixed costs or overhead to Assume sales of other products in other markets will NOT be affected. Assume the company is NOToperating at full capacity. \#2 Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,000 units at $30 each. Maize will incur additional costs of $4 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity. Should Maize Company accept the special order

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