A company contemplating the acceptance of a special order has the following unit cost behavior,...
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Accounting
A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units:
Cost Information
Cost Type
Costs
Direct Materials
$4
Direct Labor
$6
Variable Overhead
$4
Fixed Overhead
$8
A foreign company wants to purchase 1,500 units at a special unit price of $19. In addition, there will be $4,000 special shipping costs with the special order. What is the incremental income (loss) from accepting the order?
Group of answer choices
$9,500
$7,500
$(8,500)
$3,500
$(4,500)
Answer & Explanation
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