Question
It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A
It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?
| Decrease $12,000 | ||
| Increase $12,000 | ||
| Increase $108,000 | ||
| Increase $24,000 |
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The Information Audit A Practical Guide
Authors: Susan Henczel, Sue Henczel
1st Edition
3598243677, 978-3598243677
