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Farrow Company reports the following annual results: The company recelves a special offer for 32,000 units at $12 per unit. The additional sales would not
Farrow Company reports the following annual results: The company recelves a special offer for 32,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable: costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $128,000 and incremental fixed general and administrative costs of $138,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer
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