At Jaymes Company, it costs $34 per unit ($16 variable and $18 fixed) to make a product at full capacity that normally sells for $50. A foreign wholesaler offers to buy 4,144 units at $27 each. Jaymes will incur special shipping costs of $1 per unit. Assuming that Jaymes has excess operating capacity, indicate the net income (loss) Jaymes would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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|
Reject Order |
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Accept Order |
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Net Income Increase (Decrease) |
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| Revenues |
|
$ |
|
$ |
|
$ |
|
| Costs- |
|
|
|
|
|
|
|
| Variable manufacturing |
|
 |
|
 |
|
 |
|
| Shipping |
|
 |
|
 |
|
 |
|
| Net income (loss) |
|
$ |
|
$ |
|
$ |
|
Should the special order be accepted or rejected?