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cAdams Industries manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year. The following information pertains to the production of
cAdams Industries manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year. The following information pertains to the production of 20,000 sails for the current year. Selling price per unit $150 Variable costs per unit: Manufacturing Selling and administrative Fixed costs per unit: Manufacturing Selling and administrative A company has offered to purchase 3,000 sails at a price of $125 each. If accepting the special order will not change fixed costs, how would operating income be affected? Multiple Choice increase by $210,000 increase by $135,000 increase by $114,000 decrease by $1,000
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