<p>Able Company&#8217;s unit manufacturing cost is:<br /><br />Variable Costs $5

Question

<p>Able Company&#8217;s unit manufacturing cost is:<br /><br />Variable Costs $50<br />Fixed Costs 25<br /><br />A special order for 1,000 units has been received from a foreign company. The unit price requested is $55. The normal unit price is $80. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be which of the following? (Points: 4)<br />$(23,000) <br />$3,000 <br />$(20,000) <br />$5,000</p>

Explanation / Answer

Well it would cost 75 otherwise. So from what I'm reading it would be 75-25 *1000=20000 or c.

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