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Big Arber Company makes 8,000 chairs for a unit sales price of $98. Variable costs are $65 per unit and annual fixed manufacturing costs total
Big Arber Company makes 8,000 chairs for a unit sales price of $98. Variable costs are $65 per unit and annual fixed manufacturing costs total $220,000. The company has a one-time opportunity to sell an additional 4,000 units at $80 each in a foreign 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 $50,000. Income would increase by $60,000. Income would decrease by $50,000. Income would increase by $320,000
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