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Watermelon Delights manufactures 50,000 cases per year with costs: Variable production: $20 /case Fixed production: $8 /case Variable selling: $6 /case Fixed selling/admin: $4 /case

Watermelon Delights manufactures 50,000 cases per year with costs:

Variable production: $20/case

Fixed production: $8/case

Variable selling: $6/case

Fixed selling/admin: $4/case

Total costs: $38 per case. Watermelon Delights marks up prices 40%. It can produce an extra 12,000 cases. A British company offers to buy 10,000 cases at $50/case with additional costs of $3.50/case. Determine the change in net income if the order is accepted.

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