Assume That After Introducing the New Product, the Company Finds

Multiple Choice

Assume that after introducing the new product, the company finds that it has excess capacity. A foreign dealer has offered to purchase 2,000 units at a special price of $36 per unit. This sale would not disturb regular business. If the special price is accepted on the 2,000 units, the company's overall net income for the year should:

A) decrease by $24,000
B) increase by $20,000
C) increase by $8,000
D) increase by $32,000