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Alpha Productions produces computer cables specifically for accountants within the United States. These special cables are what give accountants their superpowers. Once cable in particular
Alpha Productions produces computer cables specifically for accountants within the United States. These special cables are what give accountants their superpowers. Once cable inparticular a video displaycable is sold to customers at a price of$ per cable. The company currently produces video cables eachyear which represents of the total capacity available for production. At the current level ofproduction the cost of producing and selling a single video cable are asfollows:Variable Product Costs$Fixed Product Costs$Variable Period Costs$Fixed Period Costs$A group of accountants from Europe have approached Alpha Productions to place a special order for video cables for the accountants in Europe. This special order is for video cables. Because this is such a largeorder the European accountants expect a bulkdiscount and expect to pay$ per cable. The specifications for the cables are different from the regular video cables produced. Assuch unit variable costs per unit will decrease by$ per unit. Because of the newspecifications engineers were required to rework the design of thecables incurring costs of$ to do so The variable period costs consist solely of salescommissions which will not be incurred with the special order. Other fixed period costs will not change if the special order is accepted.By how much will operating income change if the special order isacceptedAIncrease by$BIncrease by$CIncrease by$DIncrease by$EIncrease by$
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