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It costs Marigold Corp. $12 of variable and $5 of fixed costs to produce one...

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Accounting

It costs Marigold Corp. $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Marigold has sufficient unused capacity to produce the 3800 scales. If the special order is accepted, what will be the effect on net income?

$7,600 decrease

$7,600 increase

$57,000 decrease

$11,400 decrease

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