Question
Win Co. Produces a single product. Its normal selling price is $27.00 per unit. The variable costs are $16.00 per unit. Fixed costs are $21,832.00
Win Co. Produces a single product. Its normal selling price is $27.00 per unit. The variable costs are $16.00 per unit. Fixed costs are $21,832.00 for a normal production run of 5,000 units per month. Win received a request for a special order that would not interfere with normal sales. The order was for 1,685 units and a special price of $19.00 per unit. Win Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated. Assuming the order is accepted, determine the impact on net income. Select the correct answer. increase of $38,123.62 decrease of $13,480.00 increase of $8,425.00 increase of $32,015.00
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