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5) The Time Company manufactures a wall clock. The manufacturing costs include $15 for variable costs and $10 for fixed costs to produce the
5) The Time Company manufactures a wall clock. The manufacturing costs include $15 for variable costs and $10 for fixed costs to produce the wall clock that sells for $60. A one-time offer is received to purchase 2,000 wall clocks at $19 each. The company has the excess capacity for this one time special order. Calculate the financial impact the acceptance of this offer will have on net income? Explain how the decision will be impacted if the company did not have the excess capacity for the special order.
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