At jaymes company it costs 34 per unit 16 variable and 18

Reference no: EM13571337

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	$	$	$
Costs-
Variable manufacturing
Shipping
Net income (loss)	$	$	$

Should the special order be accepted or rejected?

Reference no: EM13571337

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