Answer:
Effect on income= $68,580 increase
Explanation:
Because it is a special order, and there is unused capacity, we will not take into account the fixed costs. Only the variable ones.
First, we need to calculate the unitary cost:
Unitary cost= 46.1 + 8.8 + 1.8 + 1.3
Unitary cost= $58
Now, the effect on the income of accepting the offer:
Effect on income= 2,700*(83.4 - 58)
Effect on income= $68,580 increase