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Calculate the increase or decrease in net income

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Reference no: EM133062720

Question - Bonita Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,400 units at $30 each. Bonita will incur additional costs of $1 per unit to imprint a logo and to pay for shipping.

Required - Calculate the increase or decrease in net income Bonita will realize by accepting the special order, assuming Bonita has sufficient excess operating capacity. Should Bonita Company accept the special order?

Reference no: EM133062720

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