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Company X produces a single product. The normal selling price of the product is $92.10 per unit. The cost of producing and selling a single
Company X produces a single product. The normal selling price of the product is $92.10 per unit. The cost of producing and selling a single unit of this product at the company's normal activity level of 43,000 units per month is as follows: Per Unit Direct materials $ 44.10 Direct labor $ 8.40 $ 1.40 $ 2.40 Variable manufacturing overhead Variable selling & administrative expense Fixed manufacturing overhead Fixed selling & administrative expense Total Unit Cost $ 17.90 $ 11.00 $85.20 A special order was received for 2,300 units to be delivered this month at a discounted price of $68 per unit. The variable selling and administrative expense would be $1.50 less per unit on this order than on normal sales. The company has capacity and this order will not affect the company's normal sales. How would the company's income be affected by the special order? Enter your answer as a positive number if the income would increase, and a negative if it would decrease
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