Answer:
Increase in the net income=$ 89,160
Explanation:
The amount of the financial advantage or disadvantage would be determined as follows:
Unit variable cost of order = 16.30 + 5.60+ 2.80+5.20 = 29.9
$
Sales from special order) ($45.50× 8,600) 391300
Variable cost of special order ($29.9× 8,600) <u> 257,140
</u>
Contribution from special order 134,160
Cost of special machine <u>(45,000)
</u>
Increase in contribution 89,160
Increase in the net income=$ 89,160
Note the fixed manufacturing overhead is irrelevant, they are cost that would be incurred whether or not the order is accepted
