Falcon Company has the capacity to produce 20,000 oak shelves per year and is currently selling...
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Falcon Company has the capacity to produce 20,000 oak shelves per year and is currently selling 14,000 shelves for $30 each. Grant Furniture approached Falcon about buying 600 shelves for bookcases it is building and is willing to pay $26 for each shelf. Falcon incurs the variable unit cost of $20 and fixed costs of $97,500. In addition to manufacturing costs, Falcon will incur $6,000 extra costs for this special order for Grant Furniture due to additional processing. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the income (loss) if Falcon accepts the special order? $9,600 O $(6,000) $3,600 $(2,400) $15,600 56F Haze 44 9:12 PM 4418/0033 Falcon Company has the capacity to produce 20,000 oak shelves per year and is currently selling 14,000 shelves for $30 each. Grant Furniture approached Falcon about buying 600 shelves for bookcases it is building and is willing to pay $26 for each shelf. Falcon incurs the variable unit cost of $20 and fixed costs of $97,500. In addition to manufacturing costs, Falcon will incur $6,000 extra costs for this special order for Grant Furniture due to additional processing. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the income (loss) if Falcon accepts the special order? $9,600 O $(6,000) $3,600 $(2,400) $15,600 56F Haze 44 9:12 PM 4418/0033
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