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Waterloo Co. sells product P-14 at a price of $47 a unit. The per-unit cost data are direct materials $15, direct labour $10, and
Waterloo Co. sells product P-14 at a price of $47 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overhead $16 (75% variable). Waterloo has no excess capacity to accept a special order for 39,900 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Waterloo would realize by accepting the special order. (Enter loss with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) Incremental income (loss) $ 159600 Waterloo Co. should not accept the special order.
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