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Ember Company manufactures outdoor cooking grills. For the first eight (8) months of 2012 the company reported the following operating res while operating under plant
Ember Company manufactures outdoor cooking grills. For the first eight (8) months of 2012 the company reported the following operating res while operating under plant capacity Sales (40.000 units) Cost of goods sold Gress profit Operating expenses Net Income $400,000 140,000 260000 60,000 $200,000 In the above data, 40% of the cost of goods sold is variable cost and 20% of the operating expenses are variable expen In September 2012 the company received a special onder offer for 6,000 units to be purchased at 55 cach from a company in Taiwan If the order is accepted fixed costs will not be affected but there will be stal shipping costs incurred er $10,000 Prepare an incremental analysis for the special onder and make the decision whether to accept or reject the oder with your reason for the decision made
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