Sunland would realize by accepting the special order

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Reference no: EM133440433

Question: Sunland co. sells product P-14 at a price of $48 per unit. The per-unit cost data are direct material $16, direct labour $12 and overhead $12(75% variable). Sunland has no excess capacity to accept a special order for 35,200 units at a discount of 25% from the regular price. The selling cost associated with this order would be $4 per unit. Indicate the net income(loss) that Sunland would realize by accepting the special order and should they accept it.

Reference no: EM133440433

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