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Ayayai Company is a leading manufacturer of sunglasses. One of Ayayai's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted
Ayayai Company is a leading manufacturer of sunglasses. One of Ayayai's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Ayayai about purchasing 28,000 pairs of these sunglasses. Ayayai's unit manufacturing cost, based on a full capacity of 235,000 units, is as follows: Ayayai also incurs selling and administrative expenses of $73,500 plus $2 per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in manufacturing the sunglasses. Ayayai's normal price for these sunglasses is $40 per pair. The sporting goods store has offered to pay $30 per pair. Since the special order was initiated by the sporting goods store, no sales commission will be paid. What would be the effect on Ayayai's income if the special order were accepted? Ayayai's income will by $
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