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CoGuard manufactures motors for sailboats. The company has the capacity to produce 15,000 motors per year, but is currently producing and selling 13,000 motors per
CoGuard manufactures motors for sailboats. The company has the capacity to produce 15,000 motors per year, but is currently producing and selling 13,000 motors per year. The following information relates to current production: CoGuard accepts a special sales order for 5,000 motors at a price of $240 per unit. In order to do so, it decides to cut sales to regular clients. As a result of this decision, how would operating income be affected
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