Question
You Garston company produces a single-model wind turbine and has an annual plant capacity of 3000 units. data concerning this product are given below: Annual
You
Garston company produces a single-model wind turbine and has an annual plant capacity of 3000 units. data concerning this product are given below: Annual sales at regular selling price: 2500 units, variable manufacturing cost per unit: 2000, fixed annual: 750000, variable sales commissions: 150, fixed annual: 55000. the company has received a special order for 650 units at a selling price of 2700 each. the regular sales price is 3000. the sales commissions on the 650 units would be reduced by one-third. this special order would have no impact on the total fixed costs. what effect would accepting the special order have on the company's net operating income?
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