Incremental Analysis Drill #1
per
Disney Company manufactures a product with a unit variable cost of
$23 and a unit sales price of $60. Fixed manufacturing costs were
$90,000 when 10,000 units were produced and sold, equating to $9
unit. The company has a one-time opportunity to sell an additional 3,000
units at $35 each in an international market which would not affect its
present sales. The company has sufficient capacity to produce the
additional units. How much is the relevant income effect of accepting
the special order?