Reject order accept order net income increase revenues

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Reference no: EM131204363

At Jaymes Company, it costs $34 per unit ($19 variable and $15 fixed) to make a product at full capacity that normally sells for $50. A foreign wholesaler offers to buy 4,544 units at $28 each. Jaymes will incur special shipping costs of $2 per unit. Assuming that Jaymes has excess operating capacity, indicate the net income (loss) Jaymes would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ $ Costs— Variable manufacturing Shipping Net income (loss) $ $ $ Should the special order be accepted or rejected?

The special order should be.

Reference no: EM131204363

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