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It costs a company $6 of variable costs to produce one flag, which normally sells for $20. A customer offers to purchase 30,000 flags at
It costs a company $6 of variable costs to produce one flag, which normally sells for $20. A customer offers to purchase 30,000 flags at $10 each. The company would incur special shipping costs of $1 per flag if the order were accepted. The company has sufficient unused capacity to produce the 30,000 flags. The company is currently profitable. If the special order is accepted, what will be the increase in net income?
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