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are aiways relevant to a decision 7) Nebraska ompany uses activity-based costing. The company produces and sells 20,000 units at $2 0 per unit. N
are aiways relevant to a decision 7) Nebraska ompany uses activity-based costing. The company produces and sells 20,000 units at $2 0 per unit. N Variable costs Fixed costs ebraska Company's product cost is calculated as follows: $8 per unit $2 per unit $3 per unit $13 per unit Setup costs Total costs A total of 500 setups at a cost of $120 per setup are required to produce the 20,000 units.Nebraska Company has received a special order to sell 5,000 units at $11 per unit. Nebraska Company has excess capacity available, but these 5,000 units would require 60 setups. If Nebraska Company accepts the special order, what is Nebraska's increase in net income? A) increase $5,000 B) increase $7,800 C) decrease $2,800 D) decrease $5,000
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