Question
Management Accounting: Evaluating a special Order Bawling Company manufactures footballs and has enough idle capacity to accept a special order for 20,000 footballs to be
Management Accounting:
Evaluating a special Order Bawling Company manufactures footballs and has enough idle capacity to accept a special order for 20,000 footballs to be sold for $14 each. The footballs normally sell for $20 each. The variable manufacturing costs are $10 per balls, and fixed manufacturing overhead is $5 per ball. There will be no additional selling or administrative costs related to the special order, and the special order will not affect normal sales.
Required: Calculated the effect on net income if the special order is accepted.
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