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It costs Sunland Company $10 of variable and $5 of fixed costs to produce one scale which normally sells for $48. A foreign wholesaler offers
It costs Sunland Company $10 of variable and $5 of fixed costs to produce one scale which normally sells for $48. A foreign wholesaler offers to purchase 4200 scales at $15 each. Sunland Company would incur special shipping costs of $1 per scale if the order were accepted. Sunland has sufficient unused capacity to produce the 4200 scales. If the special order is accepted, what will be the effect on net income? O $16800 decrease O $75600 decrease $63000 increase O $16800 increase
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