It costs bonita industries $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. a buyer in mexico offers to purchase 3000 units at $30 each. bonita industries has excess capacity and can handle the additional production. what effect will acceptance of the offer have on net income?

To calculate the effect of the acceptance of the offer on net income, we need to calculate the profit from the opportunity.

The revenue per unit is shall be $30 and the relevant cost per unit shall be the variable cost $28

Hence the peofit per unit shall be = Revenue - Relevant cost = $30-$28 = $2 per unit

There are 3000 units, hence the net profit from this opportunity shall be = 3000 units * $2 = $6000

Hence, we can say that the profit shall increase by $6,000

a dunce cap for you, you assed this 2 weeks ago

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return