Backcountry Equipment makes backpacking stoves. It has the capacity to produce 10,000 stoves per year...
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Backcountry Equipment makes backpacking stoves. It has the capacity to produce 10,000 stoves per year and currently is producing and selling 7,000 stoves. The normal selling price for a stove is $125. Variable costs are $55 per stove. Facilitylevel costs of $ 15 are allocated to each stove. Backcountry Equipment has received a special order to purchase 1,500 stoves for $65 each . If Backcountry Equipment accepts the special order, what is the effect on net income (increase or decrease and by how much)?
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