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35 Filbert Company incurs costs of $28 per unit ( $18 variable and $10 fixed) to make a product that normally sells for $42. A
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Filbert Company incurs costs of $28 per unit ( $18 variable and $10 fixed) to make a product that normally sells for $42. A foreign wholesaler offers to buy 5,000 units at $25 each. The special-order results in additional shipping costs of $1 per unit, which is paid by the buyer. Compute the increase or decrease in net income Filbert realizes by accepting the special order, assuming Filbert has excess operating capacity. If Filbert company accepts the special order, the change in net income will be to A) decrease $85,000 B) increase $30,000 C) increase $35,000 D) increase $125,000 E) none of the aboveStep by Step Solution
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