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Johnson Company manufactures a variety of shoes, and has received a special one - time - only order directly from a wholesaler. Johnson has sufficient
Johnson Company manufactures a variety of shoes, and has received a special onetimeonly order directly from a wholesaler. Johnson has sufficient idle capacity to accept the special order to manufacture pairs of sneakers at a price of $ per pair. Johnson's normal selling price is $ per pair of sneakers. Variable manufacturing costs are $ per pair and fixed manufacturing costs are $ a pair. Johnson's variable selling expense for its normal line of sneakers is $ per pair. What would the effect on Johnson's operating income be if the company accepted the special order?
Select one:
a Increase by $
b Decrease by $
c Increase by $
d Increase by $
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