A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct materials      $  4 Direct labor                  10 Variable overhead       8 Fixed overhead              6 A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company’s name on the product. The incremental income (loss) from accepting the order is   Group of answer choices $(2,000). $2,000. $6,000. $(6,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:

Direct materials      $  4

Direct labor                  10

Variable overhead       8

Fixed overhead              6

A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company’s name on the product. The incremental income (loss) from accepting the order is

 

Group of answer choices
$(2,000).
$2,000.
$6,000.
$(6,000).
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