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Inscribe, Inc. manufactures and sells pens for $6.00 each. Cubby Corp. has offered Inscribe, Inc. $4.00 per pen for a one-tim

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Answer #1

Correct answer---------(A) Increase of $11,200

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financial advantage (disadvantage) of accepting the special order
Additional Revenue from offer (3500 x $4) $        14,000.00
Less: Total Additional cost due to acceptance of offer $          2,800.00
Financial Advantage $        11,200.00

.

Calculation of Additional Cost of Order
Per Unit Total
Variable cost $                   0.80 $            2,800.00
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