from Cengage Learning Google Chrome signmentMain.do?invoker assignments&itakeAss

Question

from Cengage Learning Google Chrome signmentMain.do?invoker assignments&itakeAssignim; assignment-take&inprogress; fase Calculator Falcon Co. produces a single product. Its normal selling price is $25 per unit. The variable cots are $18 pe normal production run of 5,000 units per month. Falcon received a request for a specia order was for 1,350 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this ordeab selling cost of $2 per unit would be eliminated unt Fixed costs ane $8,000 for l order that wouild not inderfere with normal sales The If the order is accepted, what would be the impact on net income? increase of $5,400 increase of $8,775 increase of $6,750 Odecrease of $4,050

Explanation / Answer

Calculate impact on net income :

so answer is c) Increase of $6750

Incremental revenue (1350*21) 28350 Less: Incremental cost (18-2)*1350 (21600) Incremental net income 6750

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

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