The following selected information is available for the year 2012 for Rocket Corporation.
Variable cost #1 $146,250
Variable cost #2 $319,500
Variable cost #3 $216,000
Fixed cost #1 $202,000
Fixed cost #2 $170,000
Fixed cost #3 $90,000
Rocket Corporation has been approached by a company which wishes to place a onetime order for the product Rocket Corp sells. However, they re only willing to pay $21 for the product, however, this customer’s product requirements would result in a $2 increase in variable cost #1 and a $4,000 increase in fixed cost #2. The customer is willing to buy 6,000 units of the product under these terms.
How much money would Rocket Corporation make or lose on this special order?
Should Rocket Corporation accept this special order?
Kindly give me your A++