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Duncan Co. sells product P at a price of $38 a unit. The per-unit cost data are: direct materials $8, direct labour $10, and overhead

Duncan Co. sells product P at a price of $38 a unit. The per-unit cost data are: direct materials $8, direct labour $10, and overhead $12 (25% fixed and 75% variable). Wolff has sufficient capacity to accept a special order for 40,000 units just received. Selling costs associated with this order would be $3 per unit.

At a selling price of $33 per unit, the operating income will:

Group of answer choices

A:Increase by $60,000

B:Increase by $120,000

C:Increase by $80,000

D:Increase by $160,000

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