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Tuscun Company has $12 of variable and $5 of fixed costs to produce one vase which normally sells for $35. A foreign wholesaler offers to
Tuscun Company has $12 of variable and $5 of fixed costs to produce one vase which normally sells for $35. A foreign wholesaler offers to purchase 3,000 vases at $15 each. Tuscun would incur special shipping costs of $1 per vase if the order were accepted. This is sufficient unused capacity to produce the 3,000 vases. If the special order is accepted, what will be the effect on net income? 01) $6,000 increase 02) $9,000 decrease 03) $6,000 decrease 04) $45,000 increase
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