If the special order for 3,000 boxes of crystal glassware is accepted, the effect on the net income of Harvest, Inc. is an increase of <u>$12,000</u>.
<h3>What is break-even analysis?</h3>
Break-even analysis is an accounting technique to ensure that a company does not incur losses from its transactions.
Using the technique, a corporation ensures that the total costs are at least equal to the total revenue or the contribution margin is sufficient to cover the fixed costs, which are not variable within a relevant range.
The technique is based on the concepts of contribution margin and variable costing.
<h3>Data and Calculations:</h3>
Special order units = 3,000 boxes
Price per box for special order = $30
Variable costs per box = $24
Special shipping costs per box for the special order = $2
Contribution margin per box = $4 ($30 - $24 - $2)
Total Contribution Margin = $12,000 ($4 x 3,000)
Fixed costs = $30,000 ($10 x 3,000)
Normall selling price per box = $70
Thus, if the special order for 3,000 boxes of crystal glassware is accepted, the effect on the net income of Harvest, Inc. is an increase of <u>$12,000</u>.
Learn more about accepting special orders at brainly.com/question/25307534
