Hi,

I am currently struggling to answer this managerial acocunting problem. I've attached the problem below, and I thank you for your time and help.

Garcia Company has the following information available: Units Sold 30,000 Current Selling Price $20.00 Current Variable Cost Per Unit $12.00 Fixed Costs $200,000 A new customer has offered to purchase an additional 6,000 units but wants to pay only $12.00 per unit. The variable cost will be reduced by $2.00 per unit due to no commissions being paid on this order. The special order will take an additional cost of $5,000 in special packaging and delivery costs. Required Prepare an income statement using the current information | Prepare an income statement on the special order Should the company accept the special order? Explain your answer. Current Special Order Sales $600,000 $72,000 Variable Costs Contribution Margin Fixed Costs Net Income $400,000 Should the company accept the special order? Explain your answer with numbers