It costs HHI Company $7 of variable costs and $3 of fxed costs to produce its product at full capacity. However, the company currently has unused capacity. The product sells for $15. Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. If the special offer is accepted and produced with unused capacity, net income will: O increase $6.000. O increase $1,500. O decrease $1.500. O decrease $6,000.

It costs HHI Company $7 of variable costs and $3 of fxed costs to produce its product at full capacity. However, the company currently has unused capacity. The product sells for $15. Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. If the special offer is accepted and produced with unused capacity, net income will: O increase $6.000. O increase $1,500. O decrease $1.500. O decrease $6,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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