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What would be the net benefit or loss to the business

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QUESTION - Jacques Stone Company produces high quality marble tiles for flooring. The following information is available concerning its marble tile S.

Per square foot ($)

Selling price 50

Variable costs (5)

Fixed costs (15)

Profit 30

Lindsay has excess capacity at its plant.

There is an enquiry from an overseas customer for an order for 2 000 square foot of marbles tiles at a selling price of $20 per square foot. If the excess capacity is not used, then the operations at the plant will be temporarily shut down, resulting in savings of $16 000. What would be the net benefit or loss to the business if the order is accepted?

Reference no: EM132937736

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