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Ace Industries has an annual plant capacity of 64,000 units. current production is 53,000 units per year. At the current production volume, the variable cost
Ace Industries has an annual plant capacity of 64,000 units. current production is 53,000 units per year. At the current production volume, the variable cost per unit is $28.00 and the fred cost por unit is $420. The normal selting price of Ace's product is $41.00 per unit. Ace has been asked by Bramwall Company to fill a special order for 7.000 units of the product at a special sales price of $27.00 per unit. Bramwall is lecated in a foreign country where Ace does not curently operahe. Bramwall will market the units in its country under its own brand name, so the special order is not expected to have any effect on Ace's reguiar taies Read the reguirements. Requirement 1. How would accepting the special order impact Ace's operating income? Should Ace accept the special order? Complete the following incremental analysis to determine the impact on Ace's operating income if it accepts this special order. (Eriter a "o" for any zero balances. Use parenthoses or a minus sign indicale a decrease is contrbution margit andior operating income from the specal orter.)
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