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Georgia Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials $6.00 Direct labor 5.00 Variable overhead 4.00
Georgia Corporation has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials $6.00 Direct labor 5.00 Variable overhead 4.00 Fixed overhead 2.00 Marketing-fixed 6.00 Marketing/distribution--variable 4.60 Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Georgia Corporation about purchasing 2,500 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Georgia's change in operating profits if the one-time-only special order is accepted? $49,000 increase $22,500 increase $31.500 increase $11,000 increase
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