Question
Bramble Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign
Bramble 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 6,800 units at $31 each. Bramble will incur additional costs of $2 per unit to imprint a logo and to pay for shipping.
Calculate the increase or decrease in net income Bramble will realize by accepting the special order, assuming Bramble 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 |
eTextbook and Media
Should Bramble Company accept the special order?
Bramble Company should select an option rejectaccept the special order. |
eTextbook and Media
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