What would be the impact on the net income

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Reference no: EM13120716

Falcon Co. produces a single product. Its normal selling price is 30.00 per unit. The variable cost are 19.00 per unit. Fixed costs are 25,000 for a normal production run of 5,000 units per month. Flacon received a request for a special order that would not interfere with the normal sales. The order was for 1500 units and a special price of 20.00 per unit. Falcon Co. has the capacity to handle the special order and, fir this order, a variable selling cost of 1.00 per unit would be eliminated. If the order is accepted, what would be the impact on the net income?

Reference no: EM13120716

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