Reference no: EM13337315

In Harley Company it costs $31per unit ($19variable and $12fixed) to make a product that normally sells for $41. A foreign wholesaler offers to buy3,360units at $25each. Harley will incur special shipping costs of $1per unit. Assuming that Harley has excess operating capacity.

Indicate the net income (loss) Harley would realize by accepting the special order.(If an amount reduces the net income for Increase (Decrease) column then enter with a negative sign preceding the number e.g.-15,000 or parenthesis, e.g. (15,000). Enter all other amounts in all other columns as positive and subtract where necessary.)

		Reject Order		Accept Order		Net Income Increase (Decrease)
Revenues		$		$		$
Costs-Manufacturing
Shipping
Net income/(loss)		$		$		$