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Golden Maple Company manufactures platters. Kretsmart, a large retail merchandiser, wants to buy 4 0 0 , 0 0 0 platters from Golden Maple Company
Golden Maple Company manufactures platters. Kretsmart, a large retail merchandiser, wants to buy platters from Golden Maple Company for $ each. Golden Maple Company normally sells platters a year at $ each; its production capacity is a total of units a year. Below is the production cost information for the platters:
Variable production costs $ per unit
Fixed manufacturing overhead $: units $ per unit
Total production cost $ per unit
Total fixed manufacturing overhead costs will not change regardless of whether the special order is accepted. These costs are things such as factory rent, plant supervisor salary, insurance, and security. Kretsmart has indicated that the company is not interested in signing a contract for fewer than platters.
How much will Golden Maple Companys net income change if the special order is accepted?
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