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It costs Sunland Company $26 per unit ($18 variable and $8 fixed) to produce its...

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Accounting

It costs Sunland Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 7200 units at $21 each. Sunland would incur special shipping costs of $2 per unit if the order were accepted. Sunland has sufficient unused capacity to produce the 7200 units. If the special order is accepted, what will be the effect on net income?

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