Question
Print Item Question Content Area Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $16 per
Print Item Question Content Area Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $16 per unit. Fixed costs are $18,300 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,660 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, the differential effect on profit would be a(n) a.increase of $11,620 b.increase of $15,106 c.decrease of $6,972 d.increase of $9,296
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