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Craco Inc, manufactures baby cribs and has the capacity to produce 100,000 cribs per year. It currently produces and sells 75,000 cribs per year. The

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Craco Inc, manufactures baby cribs and has the capacity to produce 100,000 cribs per year. It currently produces and sells 75,000 cribs per year. The following information relates to current production Sale price per unit $425 Variable costs per unit Manufacturing Marketing and administrative $240 550 Total forced costs Manufacturing Marketing and administrative $750,000 $240,000 ia special sales order is accepted for 3.000 cribs at a price of $325 per unit, and foxed costs increase by $23.000, how would operating income be affected? (Assume regular sales are not affected by the special order) Increase by 5232.000 Increase by 582,000 Increase by 5105,000 Decrease by $82.000 Maragement at the Flagstaff Company currently sells its products for $250 per unit and is contemplatinta do increase in the selling price for the next year. Variable costs are Currently on osales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit) Foed expenses are $120,000 per year. If fixed costs were to decrease 10% during the current year and the new selling price goes into effect, how many units will need to be sold to breakeven 617 units 340 units 393 units 685 units

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