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The order affect the bottom line of the company

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Reference no: EM13682188

Watson Corp. produces a product with a $.30 per unit variable cost and an $80.00 per unit selling price. Fixed manufacturing costs are $100,000. The company has a on-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 additional capacity to produce the additional units, how would accepting the order affect the bottom line of the company?

A. Income would decrease by $30,000
B. Income would increase by $30,000
C. Income would increase by $60,000
D. Income would decrease by $140,000

Reference no: EM13682188

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