What is the incremental revenue associated with accepting

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Deer Company approaches Core with a special order for 15,000 units at a price of $8.50 per unit. Variable costs will be the same as the current production and accepting the special order will not have any impact on the rest of the company's orders. However, Core is operating at capacity and will incur an additional $55,000 in fixed manufacturing overhead if the order is accepted. What is the incremental revenue associated with accepting the special order?

A.) $47,500
B.) ($7,000)
C.) $927,500
D.) $127,500

 

Reference no: EM13509279

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