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asap ABC Company manufactures coffee tables For the first eight months of 2020, the company reported the following operating results while operating at 80% of
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ABC Company manufactures coffee tables For the first eight months of 2020, the company reported the following operating results while operating at 80% of plant capacity Sales (250,000 units) $85,000,000 Cost of goods sold 57,000,000 Gross profit 28,000,000 Operating expenses 8,000,000 Net income $20,000,000 An analysis of costs and expenses reveals that variable cost of goods sold is $180 per unit and variable operating expenses are $20 per unit. In September, ABC Company receives a special order for 45,000 machines at $200 each from a major coffee shop franchise. Acceptance of the order would result in $22,500 of shipping costs but no increase in fixed expenses Should ABC Company accept the special order if ABC Company receives a special order for 45,000 machines at $230 per unit? Select one O a. No, this order would decrease operating income by $1,327,500 O b. Yes, this order would increase operating income by $450,500 c. Yes, this order would increase operating income by $1,327,500 O d. No, this order would decrease operating income by $12,500Step by Step Solution
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