Business, 10.12.2019 02:31 organicmemez

Gary’s company produces high quality shirts. shirts must be well made because of frequent washings. currently, gary sells 10,000 shirts at $60 each with the capacity to produce 11,000 shirts. gary is considering a special order for 1,800 shirts at a price of $40. currently, gary has the following costs: unit costs $200,000facility costs $140,000if gary accepts the special order, they will incur an additional $2 per shirt in foreign currency transaction costs. no other product or facility costs will change. determine the impact of the special order on gary’s operating income.

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