It Costs Galiente Company $46 Per Unit ($27 Variable and $19

Multiple Choice

It costs Galiente Company $46 per unit ($27 variable and $19 fixed) to produce its product which normally sells for $58 per unit. A Brazilian wholesaler offers to purchase 5000 units at $36 each. Galiente would incur special shipping costs of $5 per unit if the order were accepted. Galiente has sufficient unused capacity to produce the 5000 units. If the special order is accepted what will be the effect on net income?

A) $50000 decrease
B) $20000 increase
C) $15000 increase
D) $35000 increase