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A corporation sells a product for $25 per unit. The product cost per unit is $19 ($5 of this amount is the fixed overhead cost).

A corporation sells a product for $25 per unit. The product cost per unit is $19 ($5 of this amount is the fixed overhead cost). The variable selling and administrative expenses are $1 per unit. A customer has offered to purchase 600 units for $18 per unit. Calculate the incremental revenue and incremental costs if you think the business should accept the order.

a) Incremental Revenue.

b) Incremental Costs.

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