What is the incremental cost associated with this special order

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6EA: Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in...
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Kyrie Inc. can make 10,000 banners per month. Kyrie can sell 9,000 banners per month to NBA fans for ₱10 per banner. The company’s costs per banner based on making 10,000 banners are:

Prime cost

₱ 5.00

Overhead cost   

₱ 3.00  overhead is 2/3 fixed at that volume

WBA offers to buy 1,000 banners with special WBA insignias for ₱7 per banner. Printing the special insignias will cost Kyrie ₱200.

What is the incremental cost associated with this special order? Show solution

Group of answer choices

₱ 6,200

₱ 8,000

₱ 7,000

₱ 8,200

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