Maize Company incurs a cost of $34.46 per unit, of which $20.87
is variable, to make a product that normally sells for $58.73. A
foreign wholesaler offers to buy 6,600 units at $30.04 each. Maize
will incur additional costs of $1.06 per unit to imprint a logo and
to pay for shipping. Compute the increase or decrease in net income
Maize will realize by accepting the special order, assuming Maize
has sufficient excess operating capacity.
| Reject | Accept | Net Income (Decrease) | |
| Revenues | $__________ | $__________ | $__________ |
| Costs | $__________ | $__________ | $__________ |
| Net | $__________ | $__________ | $__________ |
ScholarMatic: Explanation & Answer
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