Garnet company’s most popular product has a unit variable cost of $40 and a unit sales price of $70.40. fixed manufacturing costs are $192,000 when the company produces and sells 10,000 units. garnet has been approached with a one-time opportunity to sell 1,000 more units for $56 each. because the customer is a foreign wholesaler, these sales will not impact present sales. if garnet has sufficient capacity, how much will net income change as a result of the special order?
a : $3,200 decrease
b : $56,000 increase
c : $16,000 increase
d : $14,400 decrease
Answers: 1
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