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A company contemplating the acceptance of a special order has the following unit costs based on 10000 units: Direct materials $4 Direct labor 14 Variable

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A company contemplating the acceptance of a special order has the following unit costs based on 10000 units: Direct materials $4 Direct labor 14 Variable overhead 8 Fixed overhead 5 A foreign company wants to purchase 2200 units at a special unit price of $30. The normal selling price per unit is $40. In addition, a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is $4800 $(4800) $(8800). $8800

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