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Nick Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a
Nick Company has just obtained a request for a special order of 10,000 units to be shipped at the end of the month at a selling price of $19 each. Nick Company has the available resources to produce a maximum of 90,000 units per month. Nick Company is currently selling 84,000 units of this product each month through regular channels at a selling price of $22 each. For these regular sales, the cost for one unit is: variable production costs $8.70 fixed production costs $3.50 variable selling expenses $2.10 Nick Company will not incur any selling expenses on the special order units. However, the special order units will require an additional shipping cost of $0.30 per unit. Calculate the amount by which Nick Company's net income will increase if they accept the special order
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