Assuming there is excess capacity, what would be the effect of accepting a special order for 2,000 units at a price of $64.00 per phone?
A) Net income would decrease by $32,000.
B) Net income would increase by $640,000.
C) Net income would increase by $12,000.
D) Net income would increase by $36,000.

Question

Quizplus · Accepted Answer

The Answer of Assuming there is excess capacity, what would be the effect of accepting a special order for 2,000 units at a price of $64.00 per phone?
A) Net income would decrease by $32,000.
B) Net income would increase by $640,000.
C) Net income would increase by $12,000.
D) Net income would increase by $36,000.

Assuming There Is Excess Capacity, What Would Be the Effect