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It costs Garrison Company $13.10 of variable and $8.80 of fixed costs to produce one bathroom scale which normally sells for $23.30. A foreign wholesaler
It costs Garrison Company $13.10 of variable and $8.80 of fixed costs to produce one bathroom scale which normally sells for $23.30. A foreign wholesaler offers to purchase 1,700 scales at $9.50 each. Garrison will incur special shipping costs of $2.60 per scale if the order is accepted. Garrison has sufficient unused capacity to accommodate the order. If the special order is accepted, what will be the effect on net income? Decrease of $10,540 Decrease of $11,730 Increase of $10,540 Increase of $11,730
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