How much will byways income change if the company accepts

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Reference no: EM131204836

Byways Production has an annual capacity of 80,600 units per year. Currently, the company is making and selling 78,200 units a year. The normal sales price is $106 per unit; variable costs are $70 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,300 units at $75 per unit. Byways’ cost structure should not change as a result of this special order. By how much will Byways’ income change if the company accepts this order?

Reference no: EM131204836

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