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How much is the relevant income effect

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Reference no: EM133019789

Question - Sheridan Company manufactures a product with a unit variable cost of $41 and a unit sales price of $74. Fixed manufacturing costs were $80800 when 10100 units were produced and sold, equating to $8 per unit. The company has a one-time opportunity to sell an additional 1500 units at $56 each in an international market, which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order?

a. $10500

b. $22500

c. $61500

d. $70700

Reference no: EM133019789

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