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By how much will net operating income increase

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Question - Special Order: Cma Manufacturing sells a single product for $52 per unit. At the current operating level of 8,000 units, variable costs are $19 per unit and fixed costs $17 per unit. Cma has been offered a price of $20 per unit on a special order of 2702 units by Cpa Industries. If the order is accepted, the variable cost would be $3 less per unit for the special order. However, a special machine stamp will be needed to mark the units for Cpa at a cost of $13894 to Cma. This stamp has no use after the special order is made.

Assuming the capacity of Cma is 11,000 units, by how much will net operating income increase (or decrease) if the special order is accepted? Round your answer to the nearest dollar. Omit the "$." Use a "-" for decreased NOI and "+" for increased NOI.

Reference no: EM131661870

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