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It costs Blakeley Company $22 of variable costs and $14 of allocated fixed costs to produce an industrial trash can that sells for $60. A
It costs Blakeley Company $22 of variable costs and $14 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer offers to purchase 900 units at $24 each. Blakeley has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income (positive or negative) ?
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