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$21,440 higher $46,400 higher $46,400 lower $29,760 lower The company has the capacity to produce 60,000 units. The product regularly sells for $45. A wholesaler
$21,440 higher
$46,400 higher
$46,400 lower
$29,760 lower
The company has the capacity to produce 60,000 units. The product regularly sells for $45. A wholesaler has offered to pay $40 each for 1,000 units. If Missoula is at full capacity and the special order of 1,000 units is accepted, per unit costs would remain the same but total revenue would change by the difference between what can be made in the market and the special offer. The effect under this scenario on operating income would be a Multiple Choice $24,000 increase $34,000 increase $10,000 decrease $5,000 decrease Vanikord Corporation currently has two divisions which had the following operating results for last year: Because the Rubber Division sustained a loss, the president of Vanikoro is considering the elimination of this division. All of the division's traceable fixed costs could be avoided if the division was dropped. None of the allocated common corporate fixed costs could be avoided. If the Rubber Division was dropped at the beginning of last year, how much higher or lower would Vanikoro's total net operating income have been for the yearStep by Step Solution
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