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It costs Lannon Fieds $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A
It costs Lannon Fieds $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each. Lannon has excess capacity and can handle the additional production. What effect will acceptance ofthe offer have on net income? decrease $4,000 increase $4,000 increase $36,000 increase $8,000
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