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apacity of 72,000 units, current production is 54,000 units per year. At the current production volume, the variable cost per unit is $28 $4.00. The
apacity of 72,000 units, current production is 54,000 units per year. At the current production volume, the variable cost per unit is $28 $4.00. The normal selling price of Sampson's product is $46.00 per unit. Sampson has been asked by Galvano Company to fill a special order for 15,000 units of the product at unit. Galvano is located in a foreign country where Sampson does not currently operate Galvano will market the units in its country under its own brand name, so the special or effect on Sampson's regular sales Read the requirements Requirement 1. How would accepting the special order impact Sampson's operating income? Should Sampson accept the special order? Complete the following incremental analysis to determine the impact on Sampson's operating income if it accepts this special order. (Enter a "0" for any zero balances. Use pare a decrease in contribution margin and/or operating income from the special order.) Incremental Analysis of Special Sales Order Decision Revenue from special order Less expenses associated with the order. Less: Variable manufacturing cost Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order OCHI Total Order (15,000 units)
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