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(5) Top Urgent please (answer using keyboard) Question 5 CRV Corporation prepared the following budgeted income statement at the beginning of the current year: Expected
(5) Top Urgent please (answer using keyboard)
Question 5
CRV Corporation prepared the following budgeted income statement at the beginning of the current year:
Expected sales (80,000 units) | $400,000 | |
Operating costs: | ||
Variable costs | $220,000 | |
Fixed costs | 100,000 | |
(320,000) | ||
Operating income | $ 80,000 |
During the middle of the year, the managers estimated that regular sales would be 70,000 units. Recently, a special order for 10,000 units requested by a foreign company at a price of $4. If the order is accepted, an equipment of $10,000 has to be purchased. Calculate the relevant costs related to the special order decision?
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