Question
5. Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw
5. |
Assume that Cane expects to produce and sell 102,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 17,000 additional Alphas for a price of $108 per unit. If Cane accepts the customers offer, it will decrease Alpha sales to regular customers by 9,000 units. |
a. | Calculate the incremental net operating income if the order is accepted? (Loss amount should be indicated with a minus sign.) |
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