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It costs Harmon Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler
It costs Harmon Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2.000 scales at 515 each Harmon would incur special shipping costs of $1 per scale of the order were accepted. Harmon has sufficient unused capacity to produce the 2.000 scales. If the special order is accepted, what will be the effect on net income? 1.54,000 decrease O2 $30,000 increase 3. $4,000 increase O4 $6,000 decrease
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