Question
Tamarisk Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign
Tamarisk Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,800 units at $32 each. Tamarisk will incur additional costs of $1 per unit to imprint a logo and to pay for shipping. Calculate the increase or decrease in net income Tamarisk will realize by accepting the special order, assuming Tamarisk has sufficient excess operating capacity. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)
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