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How much is the relevant income effect of accepting

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Reference no: EM132555049

Question 1: Bramble Company manufactures a product with a unit variable cost of $41 and a unit sales price of $75. Fixed manufacturing costs were $79800 when 7980 units were produced and sold, equating to $10 per unit. The company has a one-time opportunity to sell an additional 1000 units at $54 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?

Option 1: $41000

Option 2: $3000

Option 3: $23940

Option 4: $13000

Reference no: EM132555049

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