Should the special order be accepted or rejected


At Jaymes Company, it costs $34 per unit ($16 variable and $18 fixed) to make a product at full capacity that normally sells for $50. A foreign wholesaler offers to buy 4,144 units at $27 each. Jaymes will incur special shipping costs of $1 per unit. Assuming that Jaymes has excess operating capacity, indicate the net income (loss) Jaymes would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)



Reject Order
Accept Order
Net Income
Increase (Decrease)

Revenues
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Costs-






        Variable manufacturing
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        Shipping
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Net income (loss)
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Should the special order be accepted or rejected?

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Accounting Basics: Should the special order be accepted or rejected
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