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Business, 18.03.2020 17:22 taylor825066

Dakota Company has been producing and selling 42,000 hats a year. There are no beginning and ending inventories. The Dakota Corporation has the capacity to produce 52,000 hats. The following data is available:

Selling price per unit $30
Variable manufacturing costs per unit $13
Variable selling and administrative costs per unit $7
Total fixed manufacturing costs $126,000
Total fixed selling and administrative costs $84,000

If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would .

A) increase by $20,000
B) increase by $50,000
C) increase by $90,000
D) decrease by $24,000

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