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Flounder Manufacturing has an annual capacity of 80,900 units per year. Currently, the company is making and selling 78,200 units a year. The normal sales
Flounder Manufacturing has an annual capacity of 80,900 units per year. Currently, the company is making and selling 78,200 units a year. The normal sales price is $101 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 5,700 units at $75 per unit. Flounder's cost structure should not change as a result of this special order.
By how much will Flounder's income change if the company accepts this order?
By how much will Flounder's income change if the company accepts this order?
Flounder net income will decrease/increase by $____ if it accepts the special order
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