- J&G Company sells decorative materials for homes. The decorative lamp, which is one of the products of J&G, is sold at $60 in the current market. The variable cost of the lamp is $30. A new customer from another country wants to buy 6000 lamps and offers to pay $50 per lamp. J& has excess capacity to produce these additional lamps without any increase in fixed costs. If this offer is accepted, there will be additional transportation costs, $10 per unit. Should J&G accept this offer? Make an incremental analysis to support your decision.

J\&G Company sells decorative materials for homes. The decorative lamp, which is one of the products of J&G, is sold at $60 in the current market. The variable cost of the lamp is $30. A new customer from another country wants to buy 6000 lamps and offers to pay $50 per lamp. J\&G has excess capacity to produce these additional lamps without any increase in fixed costs. If this offer is accepted, there will be additional transportation costs, $10 per unit. Should J\&G accept this offer? Make an incremental analysis to support your decision