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It costs Marigold Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign
It costs Marigold Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 6200 units at $21 each. Marigold would incur special shipping costs of $2 per unit if the order were accepted. Marigold has sufficient unused capacity to produce the 6200 units. If the special order is accepted, what will be the effect on net income? $6200 increase $6200 decrease $111600 increase $18600 increase Sheridan Company sells its product for $60 per unit. During 2019, it produced 68400 units and sold 57000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $820800 manufacturing overhead, and $102600 selling and administrative expenses. Under absorption costing, what amount of fixed overhead is deferred to a future period? $171000. $136800. $820800. O $34200
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