Win Co. Produces a single product. Its normal selling price is $27 per unit. The variable costs are $17 per unit. Fixed costs are $18,734 for a normal production run of 5,000 units per month. Win received a request for a special order that would not interfere with normal sales. The order was for 1,589 units and a special price of $20 per unit. Win Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated. Assuming the order is accepted, determine the impact on net income. a. increase of $36,934.33 b. increase of $7,945 c. decrease of $11,123 d. increase of $31,780

Win Co. Produces a single product. Its normal selling price is $27 per unit. The variable costs are $17 per unit. Fixed costs are $18,734 for a normal production run of 5,000 units per month. Win received a request for a special order that would not interfere with normal sales. The order was for 1,589 units and a special price of $20 per unit. Win Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated. Assuming the order is accepted, determine the impact on net income. a. increase of $36,934.33 b. increase of $7,945 c. decrease of $11,123 d. increase of $31,780

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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