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Falcon Co . produces a single product. Its normal selling price is $ 2 5 per unit. The variable costs are $ 1 5 per

Falcon Co. produces a single product. Its normal selling price is $25 per unit. The variable costs are $15 per unit. Fixed costs are $19,500 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 1,59 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit wou eliminated. If the order is accepted, the differential effect on profit would be a(n)
a. increase of $10,176
b. decrease of $7,632
c. increase of $16,536
d. increase of $12,720
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