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Falcon Co . ?produces a single product. Its normal selling price is $ 2 5 ?per unit. The variable costs are $ 1 6 ?per

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Falcon Co. ?produces a single product. Its normal selling price is $25 ?per unit. The variable costs are $16 ?per unit. Fixed costs are $21,300 ?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 1,480 ?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 $5,920
b. ?decrease of $4,440
c. ?increase of $7,400
d. ?increase of $9,620
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