Problem
Metlock Co. sells product P-14 at a price of $52 a unit. The per-unit cost data are direct materials $16, direct labour $12, and overhead $12 (75% variable). Metlock has no excess capacity to accept a special order for 38,000 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $3 per unit. Indicate the net income (loss) that Metlock would realize by accepting the special order.