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2. Variations Company had the following results of operations for the past year Sales (8,000 units at $7,00) Direct Materials (52.00 unit) Direct Labor ($1.00

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2. Variations Company had the following results of operations for the past year Sales (8,000 units at $7,00) Direct Materials (52.00 unit) Direct Labor ($1.00 ) Variable Overhead (S0.75/unit) Fixed Overhead Fixed selling and administrative expenses Operating income $ 56.000 (16,000 (8,000 (6.000) (6.000) 6.500 $15.5 A foreign company (whose sales will not affect Variations' regular sales) offers to buy 700 units at 58.00 per unit. In addition to variable manufacturing costs, there would be an export cost of $0.30 per unit Prepare an analysis of this additional business to show whether Variations should take this order. Required: Calculate the incremental income and identify whether the order should be accepted or not. (10 points). Revenue from order: Less Relevant Expenses: Net Profit (Loss) $ Should the order be accepted (yeso)? Why? (2.5 points) What qualitative factors should be considered? (2.5 points)

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