It costs Calient Company $46 per unit ($27 variable and $19 fixed) to produce its product, which normally sells for $58 per unit. A Brazilian wholesaler offers to purchase 5,000 units at $36 each. Client would incur special shipping costs of $5 per unit if the order were accepted. Galiente has sufficient unused capacity to produce the 5,000 units. If the special order is accepted, what will be the effect on net income?
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Home » Business » It costs Calient Company $46 per unit ($27 variable and $19 fixed) to produce its product, which normally sells for $58 per unit. A Brazilian wholesaler offers to purchase 5,000 units at $36 each.