Question 1 It costs Sheridan Company $12 of variable and $5 of fixed costs to pr

Question

Question 1 It costs Sheridan Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3900 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Sheridan has sufficient unused capacity to produce the 3900 scales. If the special order is accepted, what will be the effect on net income? O $7800 increase O $58500 increase ?$11 700 decrease O $7800 decrease Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

A. $7800 increase

Effect on net income = 3,900 * ($15 - $12 - $1)

Effect on net income = $7800 increase

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