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Blossom Company's unit manufacturing costs are: Variable costs $60 Fixed costs 40 A special order for 1600 units has been received from Somair, a company
Blossom Company's unit manufacturing costs are:
Variable costs $60
Fixed costs 40
A special order for 1600 units has been received from Somair, a company In Niger. Blossom has available productive capacity to fill the order. The unit price requested by Somair is $100. Blossom's normal unit selling price is $120. If the order is accepted, unit variable costs will increase by $4 for additional labeling and freight costs. If the special order is accepted, Blossom's Incremental profit (loss) will be
$(32000).
$96000
$(6400)
$57600.
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