Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a
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Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,000 pairs of boots at a price of \($50.00\) per pair. Pope's normal selling price is \($65.00\) per pair of sneakers. Variable manufacturing costs are \($35.00\) per pair and fixed manufacturing costs are \($12.00\) a pair. Pope's variable selling expense for its normal line of sneakers is \($1.00\) per pair. What would the effect on Pope's operating income be if the company accepted the special order?
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Managerial Accounting For Undergraduates
ISBN: 9780357499948
2nd Edition
Authors: James Wallace, Scott Hobson, Theodore Christensen
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