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It costs Bonita Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign
It costs Bonita Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 4000 units at $21 each. Bonita would incur special shipping costs of $2 per unit if the order were accepted. Bonita has sufficient unused capacity to produce the 4000 units. If the special order is accepted, what will be the effect on net income? 4000 decrease 0 $4000 increase O $12000 increase O $72000 increase
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