Answer:
Incremental profit = $30000
so correct option is a. $30,000
Explanation:
given data
Variable costs = $75
Fixed costs = 30
sales price = $165
to find out
incremental profit or loss from accepting
solution
we get here contribution per unit will be here as
contribution per unit = $165 - $75
contribution per unit = $90
now we get here loss on contribution for giving up regular sale that is
loss on contribution = $3000 × $90
loss on contribution = $270000
and
now we get Incremental contribution for special order will be
Incremental contribution = (135 - 75) × 5000
Incremental contribution = $300000
and
Incremental profit will be = $300000 - $270000
Incremental profit = $30000
so correct option is a. $30,000
