What will be the effect on net income


It costs ABC Company $10 of variable and $8 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 1,000 scales at $15 each. ABC would incur special shipping costs of $2 per scale if the order were accepted. ABC has sufficient unused capacity to produce the 1,000 scales. If the special order is accepted, what will be the effect on net income?

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Accounting Basics: What will be the effect on net income
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