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  3. it costs lannon $13 of variable costs and $5 of al

It costs Lannon $13 of variable costs and $5 of allocated fixed costs to produce...

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Accounting

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It costs Lannon $13 of variable costs and $5 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in a new geographic area offers to purchase 1,000 units at $16 each. Lannon has excess capacity, can handle the additional production, and will not lose any of its current customers if it agrees to fill this special order. What should Lannon do? O Accept the special order because net income would increase $3,000. O Reject the special order because net income would decrease $14,000. O Reject the special order because net income would decrease $2,000. O Accept the special order because net income would increase $16,000

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