Which of the correctly notes the change in income

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Question - Brilliant, Inc. reported the following results from the sale of 22,000 units of IT-54:

Sales $534,000

Variable manufacturing costs 264,000

Fixed manufacturing costs 110,000

Variable selling costs 52,400

Fixed administrative costs 35,600

Extra Company has offered to purchase 3,000 IT-54s at $16 each. Brilliant has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the full cost of production is $17. Which of the following correctly notes the change in income if the special order is accepted?

Reference no: EM133187113

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