It costs lannon fields 14 of variable costs and 6 of

Reference no: EM13451777

It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each. Lannon has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

decrease $4,000

increase $4,000

increase $36,000

increase $8,000

Reference no: EM13451777

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