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

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Accounting

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It costs Waterway 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 8000 units at $21 each. Waterway would incur special shipping costs of $2 per unit if the order were accepted. Waterway has sufficient unused capacity to produce the 8000 units. If the special order is accepted, what will be the effect on net income? $8000 decrease $144000 increase $8000 Increase O $24000 increase

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