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It costs Crane Company $12 of variable and $5 of fixed costs to produce one scale which normally sells for $45. A foreign wholesaler offers
It costs Crane Company $12 of variable and $5 of fixed costs to produce one scale which normally sells for $45. A foreign wholesaler offers to purchase 3800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Crane has sufficient unused capacity to produce the 3800 scales. If the special order is accepted, what will be the effect on net income? $7600 decrease $49400 decrease $57000 increase $7600 increase
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