Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $17 per unit. Fixed costs are $19,500 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,430 units with a special price of $19 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, what would be the impact on net income? a. increase of $5,720 b. increase of $4,576 c. increase of $7,436 d. decrease of $3,432

a) increase of $5,720

Explanation:

The relevant cash flows for this decision are:

The contribution from the special order would be determined as follows:

Contribution from special order = sales revenue - variable cost

= (19 - 15)× 1,430 = $5,720

Increase of = $5,720

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.

answervulnerability assessment;