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It costs Cable Cut Company $26 per unit ($18 variable and $8 fixed) to produce...

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Accounting

It costs Cable Cut Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 6400 units at $21 each. Cable Cut would incur special shipping costs of $2 per unit if the order were accepted. Cable Cut has sufficient unused capacity to produce the 6400 units. If the special order is accepted, what will be the effect on net income?

$6400 increase

$115200 increase

$6400 decrease

$19200 increase

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