Pharoah Company's unit costs based on 100000 units are:
Varaible cost $40
Fixed cost 40
Pharoah's normal unit selling price is $175. Aspecial order from Astra International, an Indonesian firm, has been received for 5300
units at $135 per unit. Pharoah would incur an additional variable cost of $2 per unit in shipping costs on the special order. The
company has available production productive capacity to accept the order. The incremental profit (loss) from accepting the order
would be
- $(212000).
- $(174900).
- $386900.
- $397500.