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Sarasota Manufacturing has an annual capacity of 80,700 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales
Sarasota Manufacturing has an annual capacity of 80,700 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $101 per unit, variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,500 units at $75 per unit. Sarasota's cost structure should not change as a result of this special order. By how much will Sarasota's income change if the company accepts this order? by $ Sarasota' net income will if it accepts the special order
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