Determine the impact on net income


Win Co. Produces a single product. Its normal selling price is $30.00 per unit. The variable costs are $16.00 per unit. Fixed costs are $20,147.00 for a normal production run of 5,000 units per month. Win received a request for a special order that would not interfere with normal sales. The order was for 1,634 units and a special price of $21.00 per unit. Win Co. has the capacity to handle the special order and, for this order, a variable selling cost of $2 per unit would be eliminated. Assuming the order is accepted, determine the impact on net income.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Determine the impact on net income
Reference No:- TGS046249

Expected delivery within 24 Hours