It costs sunland company $28 of variable costs and $18.0 of allocated fixed costs to produce an industrial trash can that sells for $90. a buyer in mexico offers to purchase 3000 units at $30 each. sunland company has excess capacity and can handle the additional production. what effect will acceptance of the offer have on net income?

Increase in income= $6,000

Explanation:

Giving the following information:

It costs Sunland Company $28 of variable costs and $18.0 of allocated fixed costs to produce an industrial trash can that sells for $90. A buyer in Mexico offers to purchase 3000 units at $30 each. Sunland Company has excess capacity and can handle the additional production.

Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.

Effect on income= (30 - 28)*3,000= $6,000

answer trochanter; i believe this is correct, plz check first, good luck;