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Day 5: Group Assignment Question 2 ABC Inc. has the capacity to produce 10,000 units per year, and currently produces and sells 7.000 units per

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Day 5: Group Assignment Question 2 ABC Inc. has the capacity to produce 10,000 units per year, and currently produces and sells 7.000 units per year. The product normally sell for $100 cach XYZ Inc. has offered to buy 2,000 units from ABC for $60 each Variable costs associated with manufacturing the product are 515 each for direct labor and $40 each for direct materials. Fixed costs are $115,000. a)What is ABC's current net income? (4 points) b) Should ABC accept the special offer? Why? (4 points)

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