Acompany incurs costs of $75 ($67 variable and $8 fixed) to make a product that normally sells for $120. a customer offers to buy 4,200 units at $70 each. assuming the company has adequate manufacturing capacity, it should? *

C : accept the offer because it will produce net income of $12,600.

Explanation:

In this question we have to compare the cost which is presented below:

In the first case

The variable cost would be

= Number of units buys × variable cost per unit

= 4,200 units × $67

= $281,400

And, the selling cost would be

= Number of units sold × selling price per unit

= 4,200 units × $70

= $294,000

So, the difference would be

= $294,000 - $281,400

= $12,600

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

answer; post closing trial balance;