Each month Newton Company produces 30,000 units of a product that has variable costs of $70 per unit.Total fixed costs for the month are $99,000.A special order is received for 1,000 units at a price of $80 per unit.Newton Company has adequate capacity for the special order.If Newton Company accepts the special order,what is the profit to Newton Company from the special order?
A) $0
B) $6,700
C) $7,000
D) $10,000

Question

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The Answer of Each month Newton Company produces 30,000 units of a product that has variable costs of $70 per unit.Total fixed costs for the month are $99,000.A special order is received for 1,000 units at a price of $80 per unit.Newton Company has adequate capacity for the special order.If Newton Company accepts the special order,what is the profit to Newton Company from the special order?
A) $0
B) $6,700
C) $7,000
D) $10,000

Each Month Newton Company Produces 30,000 Units of a Product