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CC. company manufactures Product X for Automobile. The company has the capacity to produce 100,000 Product X per year, but is currently producing and selling
CC. company manufactures Product X for Automobile. The company has the capacity to produce 100,000 Product X per year, but is currently producing and selling 75,000 Product x per year. The following information relates to current production: Sale price per unit $400 Variable costs per unit: Manufacturing $270 Marketing and administrative $50 Total fixed costs: Manufacturing $750,000 Marketing and administrative $200,000 If a special sales order is accepted for 3.200 Product X at a price of $350 per unit. The special order has no effect on the company's total fixed costs. The customer would like modifications made to product requiring investment of $12,000 in special molds that would have no salvage value. How would operating income be affected? Note: If Operating income will increase for example by $3,000, write 3000; if operating income will decrease by $3,000, write-3000 Answer: Gintahattomat
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