Answer:
$7,800 Increase
Step-by-step explanation:
Calculation to determine what will be the effect on net income If the special order is accepted,
Effect on net income= ((7,800 x $21) - [($18 + $2) x 7,800]
Effect on net income=$163,800-($20*7,800)
Effect on net income=$163,800-$156,000
Effect on net income= $7,800 Increase
Therefore If the special order is accepted, what will be the effect on net income is $7,800 Increase