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A local vendor at the county fair sells snow cones for $.50 each. When 250...

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Accounting

A local vendor at the county fair sells snow cones for $.50 each. When 250 snow cones are sold, each snow cone is estimated to have $.10 in variable costs and $.15 in fixed costs. A local school group plans on attending the fair next week and wishes to purchase 50 snow cones for $.25 each. The vendor can sell as many as 400 snow cones per day. If the special order were accepted, net income would:

a. increase by $12.50.
b. increase by $7.50.
c. not change.
d. decrease by $25.00.

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