2. Accounting
3. text is avaliable in here beca incs current product price...

# Question: text is avaliable in here beca incs current product price...

###### Question details

Text is avaliable in here;

Beca Inc.'s current product price is $70, variable cost per unit is$35, total fixed costs are $1,430,000, and sales volume is$150,000 units. The company is considering accepting an order to sell an additional 5,000 units for $40 per unit. Variable selling expenses will rise by$1 per unit because of an additional sales commision that would have to be paid and an additional \$17,000 would need to be spent for fixed costs related to the other. By how much would profits increase or decrease if Boca accepts this special order?