Bonita Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,400 units at $30 each. Bonita will incur additional costs of $1 per unit to imprint a logo and to pay for shipping.

Calculate the increase or decrease in net income Bonita will realize by accepting the special order, assuming Bonita has sufficient excess operating capacity. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

		Net Income Increase (Decrease)
Incremental revenue		$enter a dollar amount
Incremental cost		enter a dollar amount
Increase (decrease) in net income		$enter a total amount

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Should Bonita Company accept the special order?

Bonita Company should select an option acceptreject the special order.