Crane Company incurs a cost of $36 per unit, of which $19 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,300 units at $31 each. Crane will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Crane will realize by accepting the special order, assuming Crane has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Accept Net Income Increase (Decrease) Revenues $ $ $ Costs Net income $ $ $ Should Crane Company accept the special order? Crane company should the special order.
Added by Ralph L.
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Calculate the total cost per unit for Crane Company: Cost per unit = $30 + $3 = $33 Show more…
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