(Solved):In Harley Company it costs $30 per unit ($19 variable and $11 fixed) to make a product that…

 

Question

In Harley Company it costs $30 per unit ($19 variable and $11 fixed) to make a product that normally sells for $49. A foreign wholesaler offers to buy 3,830 units at $24 each. Harley will incur special shipping costs of $1 per unit. Assuming that Harley has excess operating capacity. Indicate the net income (loss) Harley would realize by accepting the special order.

 

EXPERT ANSWER

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