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What will be the effect on net income

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Question - It costs Coronado Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Coronado has sufficient unused capacity to produce the 1800 scales. If the special order is accepted, what will be the effect on net income?

a. $5400 decrease

b. $27000 increase

c. $3600 increase

d. $3600 decrease

Reference no: EM132537951

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