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Kingbird Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and
Kingbird Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Kingbird has no excess capacity to accept a special order for 37,100 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Kingbird would realize by accepting the special order. (Enter loss with a negative sign preceding the number, eg.-15,000 or parenthesis, eg. (15,000).) Incremental income (loss) $ Kingbird Co. should not accept the special order.
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