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Portland Industries manufactures a product with the following costs per unit at the expected production of 30,000 units: Direct materials............ ...... $ 10 Direct labor........
Portland Industries manufactures a product with the following costs per unit at the expected production of 30,000 units: Direct materials............ ...... $ 10 Direct labor........ Variable manufacturing overhead...... $8 Fixed manufacturing overhead........ $ 10 The company has the capacity to produce 60,000 units. The product regularly sells for $45. A new potential customer has offered to purchase 2,000 units for $30 each. What is the effect on net income if Portland Industries accepts the special order? $6,000 decrease $10,000 increase $60,000 increase $26,000 decrease
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