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28 Big Arber Company makes 6,000 chairs for a unit sales price of $90. Variable costs are $40 per unit and annual fixed manufacturing costs
28 Big Arber Company makes 6,000 chairs for a unit sales price of $90. Variable costs are $40 per unit and annual fixed manufacturing costs total $260,000. The company has a one-time opportunity to sell an additional 2,500 units at $65 each in a foreign market. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect income as follows: Income would decrease by $45,833 Income would increase by $45,833 Income would increase by $162,500. Income would increase by $62,500
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