Blossum company incurs a cost of $36 per units, of which $21 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,700 units at $32 each. Blossum will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Blossum will realize by accepting the special order, assuming Blossum has sufficient excess operating capacity.

What are the following values:

Reject Accept Net income Increase (decrease)

Revenues

Costs

Net Income

Should Blossum Company accept the special order?

Should Blossom Company accept the special order? Blossom company should the special order