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Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unitselling price. Fixed manufacturing overhead costs are $100,000 per year. The
Braizen, Inc. produces a product with a $30 per-unit variable cost and an $80 per-unitselling price. Fixed manufacturing overhead costs are $100,000 per year. The companyhas received a special order request to sell an additional 8,000 units. The specialorder units will incur an additional $2 per unit variable shipping cost that is notassociated with regular sales.
Assume Braizen has the capacity to produce 80,000 units and they are currently selling75,000 units to regular customers.
Calculate the increase in company profits if Braizen accepts the special order at aselling price of $70 per unit. Do not use decimals or type the word increase afteryour answer.
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