Do It! Review 21-2 Maize Company incurs a cost of $34.01 per unit of which 20.50

Question

Do It! Review 21-2 Maize Company incurs a cost of $34.01 per unit of which 20.50 is vanable to make a product that normally sells for $58.68. A foreign wholesaler offers to buy 6,100 units at S30.48 each. Maize will incur additional costs of $1.99 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize wil realize by accepting the special order, assuming Maize has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number eg.45 or parentheses e.g. (45).) Net Income Increase (Decrease) Reject Accept Revenues Costs Net e Company accept th Maize company should the special order

Explanation / Answer

Maize company should accept the special order.

Reject Accept Net income increase(decrease) Revenues(6,100 * $30.48) $0 $185,928 $185,928 Costs(6,100 * $20.50) + (6,100 * $1.99) $0 $137,189 ($137,189) Net income $0 $48,739 $48,739

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.