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The product regularly sells for $45. A wholesaler has offered to pay $40 each for 2,000 units. If Missoula is at full capacity and the
The product regularly sells for $45. A wholesaler has offered to pay $40 each for 2,000 units. If Missoula is at full capacity and the special order of 1,000 units is accepted, per unit costs would remain the same but total revenue would change by the difference between what is can be made in the market and the special offer. The effect under this scenario on operating income would be a Multiple Choice $24,000 increase Sim $10,000 increase
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