Big Arber Company makes 7,000 chairs for a unit sales price of $80 Variable costs are $30 per unit and annual fixed manufacturing costs total $250,000 The company has a one time opportunity to sell an additional 3,000 units at $75 each in a different market If the company has sufficient capacity to...

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Big Arber Company makes 7,000 chairs for a unit sales price of $80. Variable costs are $30

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Big Arber Company makes 7,000 chairs for a unit sales price of $80. Variable costs are $30 per unit and annual fixed manufacturing costs total $250,000. The company has a one-time opportunity to sell an additional 3,000 units at $75 each in a different market. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect income as follows:

Income would increase by $27,857.

Income would decrease by $27,857.

Income would increase by $135,000.

Income would increase by $225,000.

Posted Date: Jul 11, 2024 01:19 AM

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		Income would increase by $27,857.
		Income would decrease by $27,857.
		Income would increase by $135,000.
		Income would increase by $225,000.

Big Arber Company makes 7,000 chairs for a unit sales price of $80. Variable costs are $30

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