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Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one - time - only special order for a product similar to one
Crandle Manufacturers Inc. is approached by a potential customer to fulfill a one - time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers: Variable costs: Direct materials $160 80 155 95 Direct labor Manufacturing support Marketing costs Fixed costs: Manufacturing support Marketing costs Total costs 155 65 710 Total costs 710 355 Markup (50%) Targeted selling price $1,065 What is the change in operating profits if the one-time-only special order for 1,070 units is accepted for $560 a unit by Crandle? O A. $74,190 increase in operating profits B. $74,900 decrease in operating profits C. $74,190 decrease in operating profits D. $74,900 increase in operating profits
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