Question
Imaginary Company has no beginning and ending inventories, and has the following data about its only product: Fixed manufacturing costs$92,000Fixed selling and administrative costs$69,000Variable manufacturing
Imaginary Company has no beginning and ending inventories, and has the following data about its only product:
Fixed manufacturing costs$92,000Fixed selling and administrative costs$69,000Variable manufacturing costs$1,030,000Variable selling and administrative costs$120,000Selling price (per unit)$125Current units produced and sold23,000
Assume that Imaginary Company can produce at most 24,000 units. The company has received a special order for 1,500 units at $60.00 per unit. If the special order is accepted, what will be the effect on net income?
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