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It costsMarigoldCompany $26per unit ($18variable and $8fixed) to produce its product, which normally sells for $38per unit. A foreign wholesaler offers to purchase3400units at $21each.Marigoldwould
It costsMarigoldCompany $26per unit ($18variable and $8fixed) to produce its product, which normally sells for $38per unit. A foreign wholesaler offers to purchase3400units at $21each.Marigoldwould incur special shipping costs of $2per unit if the order were accepted.Marigoldhas sufficient unused capacity to produce the3400units. If the special order is accepted, what will be the effect on net income?
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