What effect will acceptance of the offer have on net income, Managerial Accounting

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What effect will acceptance of the offer have on net income

Problem

The Kool Company manufactures outdoor patio tables which it sells for $60 each. To produce each table, the company incurs $28 of variable costs and $12 of allocated fixed costs. A buyer in Puerto Rico offers to purchase 3,000 tables at $36 each. The Kool Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

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Managerial Accounting: What effect will acceptance of the offer have on net income

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