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Byways Production has an annual capacity of 80,800 units per year. Currently, the company is making and selling 78,500 units a year. The normal sales
Byways Production has an annual capacity of 80,800 units per year. Currently, the company is making and selling 78,500 units a year. The normal sales price is $105 per unit; variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,400 units at $70 per unit. Byways' cost structure should not change as a result of this special order.
By how much will Byways' income change if the company accepts this order?
Byways' net income willdecreaseby $______ if it accepts the special order.
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