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ariations Company had the following results of operations for the past year. es (8,000 units at $7.00) riable manufacturing costs xed manufacturing costs xed selling

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ariations Company had the following results of operations for the past year. es (8,000 units at $7.00) riable manufacturing costs xed manufacturing costs xed selling and administrative expenses Operating income S 56,000 (30,000 A foreign company (whose sales will not affect Variations' regular sales) offers to buy 700 units at $4.00 per unit. In addition to variable manufacturing costs, there would be an export cost of $0.30 per unit. Prepare an analysis of this additional business to show whether Variations should take this order. State clearly what the incremental revenues, incremental costs and inc business remental income are for Variations if it accepts the additional Answer: export sale 2,00

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