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Edwards Company makes a product that regularly sells for $15.50 per unit. (Click the icon to view additional information.) 7. If Edwards Company has
Edwards Company makes a product that regularly sells for $15.50 per unit. (Click the icon to view additional information.) 7. If Edwards Company has excess capacity, should it accept the offer from Powell? Show your calculations. 8. Does your answer change if Edwards Company is operating at capacity? Why or why not? 7. If Edwards Company has excess capacity, should it accept the offer from Powell? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating Income Edwards should the offer because operating income will 8. Does your answer change if Edwards Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Edwards should the offer if operating at capacity because operating income will
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