wilson co. produces tennis rackets. a customer offered wilson co. $400 per racket for 200 rackets. to fill the order, wilson would incur unit-level costs of $300 per unit and batch-level costs of $1,000. wilson also incurred $10,000 of product-level costs to design the racket and has $100,000 of facility-level costs. if wilson co. does not accept the special order, they can rent out the excess capacity for $10,000. should wilson co. accept the special order? what or why not?

The term "profit" refers to the monetary gain realized when the income from a commercial operation outweighs the expenses, charges, and taxes related to operating that enterprise. The three different types of profit are operational income, net income, and gross margin. Profit margin shows how efficiently a company spends its revenue.

What is a formula for profit?

Net Income - Total Revenues = Profit is the formula used to determine profit. To calculate the profit, all realized sales are removed from direct and indirect costs. Payroll expenses and material expenditures are two instances of direct costs. Indirect expenditures are typically used to describe overhead costs like rent and bills.

Briefing:

The unit level costs 200 units x $300 = $60,000.

The batch level cost=$1,000.

The opportunity cost = $10,000

Total differential cost =$71,000.

differential revenue =200 units x $400 = $80,000

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