Answer:
Relevant Revenue = $576,000
Relevant Cost = $522,000
Explanation:
As per the data given in the question,
Variable cost = $29 per unit
Company received order of = 18,000 units
Cost of each product = $32
So
Only Relevant Revenue is the revenue from special order = Cost × units
= $32 × 18,000
= $576,000
Only Relevant Cost is the cost from special order = Variable cost × units
= $29 × 18,000
= $522,000
So,
Reject order Accept order Differential
Revenues 0 $576,000 $576,000
Cost :
Variable
manufacturing 0 $522,000 -$522,000
Income(loss) 0 $54000 $54000
