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Excess capacity to accept special order

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Ivanhoe Co. sells product P-14 at a price of $48 a unit. The per unit cost data are direct materials $15, direct labour $11, and overhead $12 (75% variable). Ivanhoe has no excess capacity to accept a special order ofr 35,900 units, at a discount of 25% from the regular price. Selling costs associated with this order would be $4 per unit. Indicate the net income (loss) that Ivanhoe would realize by accepting the special order.

Reference no: EM133312965

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