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Falcon Co . produces a single product. Its normal selling price is $ 2 7 per unit. The variable costs are $ 1 8 per

Falcon Co. produces a single product. Its normal selling price is $27 per unit. The variable costs are $18 per unit. Fixed costs are $18,200 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,700 units with a special price of $19 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, the differential effect on profit would be a(n)
a. increase of $5,100
b. increase of $4,080
c. increase of $6,630
d. decrease of $3,060

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