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the company has an opportunity to secure a special order of 800 units if it is willi 636510

Given the following data:

 

Total

Per Unit

Sales

$30,000

$10

Less variable expenses

18,000

6

Contribution margin

12,000

$ 4

Less fixed expenses

9,000

 

Net operating income

$ 3,000

 

The company has an opportunity to secure a special order of 800 units if it is willing to  drop the selling price on these units to $9. In addition to the usual variable expenses, the costs of securing the special order would be $1,000. The company”s regular sales  would not be affected by the special order. If the special order is accepted, the company”s overall net operating income will:

A) increase $2,400

B) increase $1,400

C) increase $2,200

D) decrease $2,200

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