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Backcountry Equipment makes backpacking stoves. It has the capacity to produce 10,000 stoves per year and currently is producing and selling 7,000 stoves. The normal
Backcountry Equipment makes backpacking stoves. It has the capacity to produce 10,000 stoves per year and currently is producing and selling 7,000 stoves. The normal selling price for a stove is $125. Variable costs are $55 per stove. Facilitylevel costs of $ 15 are allocated to each stove. Backcountry Equipment has received a special order to purchase 1,500 stoves for $65 each . If Backcountry Equipment accepts the special order, what is the effect on net income (increase or decrease and by how much)?
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