What would be the impact to monthly profits


The normal selling price is $16 per unit. The company's capacity is 15,000 units per month. An order has been received from a retailer for 2,000 additional t-shirts at $13 per unit. The order would not affect regular sales and would not change the company's total fixed costs. Ignore the impact of income taxes in your calculation. Should the order be accepted? What would be the impact to monthly profits?

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Accounting Basics: What would be the impact to monthly profits
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