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Corn Co incurs a cost of $38 per unit, of which $10 is variable, to make a product that normally sells for $56. A foreign
Corn Co incurs a cost of $38 per unit, of which $10 is variable, to make a product that normally sells for $56. A foreign wholesaler offers to buy 5510 units at $23 each. Corn will incur shipping costs of $3 per unit. Compute the increase or decrease in net income Corn will realize by accepting the special order using differential analysis and complete the below table. Should they accept the special order? Round all answers to the nearest whole unit and whole dollar. Enter negative numbers with a minus sign. Enter zeros where appropriate.
Accept or Reject the Special Order | ||||
---|---|---|---|---|
Reject | Accept | Differential | ||
Revenue | $____ | $_____ | $_____ | |
Costs | $____ | $_____ | $_____ | |
Net Income | $____ | $_____ | $_____ |
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