How would acceptance of the special order affect net income

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Question - ABC Co. produces a product with a $30 per unit variable cost and an $80 per unit sales price. Fixed manufacturing costs are $100,000. The company has a one-time opportunity to sell an additional 1,000 units at $60 each and it would not affect its current sales. Assuming the company has sufficient capacity to produce the additional units, how would acceptance of the special order affect net income?

A. Income would decrease by $30,000

B. Income would increase by $70,000

C. Income would decrease by $70,000

D. Income would increase by $30,000

Reference no: EM133131649

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