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Waterways mass-produces a special connector unit that it normally sells for $4.10. It sells approximately 34,100...

Waterways mass-produces a special connector unit that it normally sells for $4.10. It sells approximately 34,100 of these units each year. The variable costs for each unit are $2.50. A company in Canada that has been unable to produce enough of a similar connector to meet customer demand would like to buy 16,500 of these units at $2.80 per unit. The production of these units is near full capacity at Waterways, so to accept the offer from the Canadian company would require temporarily adding another shift to its production line. To do this would increase variable manufacturing costs by $0.30 per unit. However, variable selling costs would be reduced by $0.20 a unit.

An irrigation company has asked for a special order of 2,000 of the connectors. To meet this special order, Waterways would not need an additional shift, and the irrigation company is willing to pay $3.30 per unit.
Your answer is partially correct. Try again.
What are the consequences of Waterways agreeing to provide the 16,500 units to the Canadian company? Would this be a wise “special order” to accept?
Waterways

shouldshould not

accept the special order because net income

decreasesincreases

by $ .

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT
Your answer is partially correct. Try again.
Should Waterways accept the special order from the irrigation company?
Waterways

should notshould

accept the special order because net income

increasesdecreases

by $ .

LINK TO TEXT

LINK TO TEXT

LINK TO TEXT
Your answer is partially correct. Try again.
What would be the consequences of accepting both special orders?
Accepting both special orders would

increasedecrease

net income by $ .
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