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Jack's company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct materials 6 Direct labor

Jack's company is contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:

Direct materials 6
Direct labor 10
Variable overhead 8
Fixed overhead 4

A local company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, an engraver will have to be purchased for $4,000 in order for the local company to have it's logo engraved.

What is the incremental income (loss) from accepting the order?

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