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It costs Vaughn Manufacturing $10 of variable and $5 of fixed costs to produce one scale which normally sells for $41. A foreign wholesaler offers
It costs Vaughn Manufacturing $10 of variable and $5 of fixed costs to produce one scale which normally sells for $41. A foreign wholesaler offers to purchase 4000 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted Vaughn has sufficient unused capacity to produce the 4000 scales. If the special order is accepted, what will be the effect on net income? $44000 decrease $60000 Increase $16000 decrease O $16000 Increase
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