Question
1) Flint Manufacturing has an annual capacity of 80,500 units per year. Currently, the company is making and selling 78,000 units a year. The normal
1) Flint Manufacturing has an annual capacity of 80,500 units per year. Currently, the company is making and selling 78,000 units a year. The normal sales price is $106 per unit, variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,600 units at $70 per unit. Flint's cost structure should not change as a result of this special order. By how much will Flint's income change if the company accepts this order?
*** Flint' net income will (Increase or decrease) by (Amount $) it it accepts the special order.
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