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JNR Products produces and sells plastic soft drink cups with specialised logos on the front. They sell the cups in batches of 500 for $125

JNR Products produces and sells plastic soft drink cups with specialised logos on the front. They sell the cups in batches of 500 for $125 per batch. The company has the capacity to produce 100 batches per month but averages much less. When 75 batches are sold a month, each batch has $40 worth of variable costs and $5 worth of xed overhead costs allocated to it. The company has been approached by a local reman's association who wishes to purchase three batches of cups for $50 per batch. If the special order were accepted, net income would:

a. increase by $10.

b. decrease by $225.

c. increase by $15.

d. increase by $30.

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