Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Luse Enterprises is considering a special order for an export company. Luses normal selling price is $15 per unit, and the price for the special
Luse Enterprises is considering a special order for an export company. Luses normal selling price is $15 per unit, and the price for the special order is $10 per unit for 10,000 units. Luses variable cost is normally $8 per unit but $1 per unit in selling expense that is normally incurred will be avoided on the special order. Luse has capacity to produce 100,000 units and is currently selling 90,000. Total fixed costs of $30,000 per year will be unaffected. What will be the impact of the accepting the special order on Luses income?
income will increase by $30,000 |
income will increase by $70,000 |
income will increase by $23,000 |
income will increase by $15,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started