Minnesota Company has no beginning and ending inventories, and has the following data about its...
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Accounting
Minnesota Company has no beginning and ending inventories, and has the following data about its only product:
Fixed manufacturing costs $92,000
Fixed selling and administrative costs $69,000
Variable manufacturing costs $1,030,000
Variable selling and administrative costs $120,000
Selling price(per unit) $125
Units produced and sold 23,000
Assume there is excess capacity. The company has received a special order for 1,000 units at $60.00 per unit. If the special order is accepted, what will be the effect on net income?
A) net income increases by $3,000
B) net income increases by $6,000
C) net income increases by $10,000
D) net income increases by $15,220
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