Blowing sand company has just received a one-time offer to purchase 8,400 units of its gusty model for a price of $25 each. the gusty model costs $29 to produce ($19 in variable costs and $10 of fixed overhead). because the offer came during a slow production month, blowing sand has enough excess capacity to accept the order.

1. should blowing sand accept the special order?
-yes
-no

2. calculate the increase or decrease in short-term profit from accepting the special order.
profit (increases or decreases) by

Instructions are listed below.

Explanation:

Giving the following information:

Blowing Sand Company has just received a one-time offer to purchase 8,400 units of its Gusty model for a price of $25 each. The Gusty model costs $29 to produce ($19 in variable costs and $10 of fixed overhead).

Becuase there is unused capacity and it is a special oofer, we will not have into account the fixed costs.

A) Blowing Sand should accept the special offer because it covers the variable cost.

B) Increase in income= (8400*25) - (8400*19)= $50,400

answer: heh

explanation:

answer/// there is an inverse relationship between price and quantity demanded;