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Johnson Company produces and sells a consumer goods product.The list price for this product is $22.00 per unit.The product's per unit costs are provided at
Johnson Company produces and sells a consumer goods product.The list price for this product is $22.00 per unit.The product's per unit costs are provided at left.A potential customer has approached Johnson with an offer to purchase 20,000 units of Johnson's primary product at a price of $17.50 per unit. Johnson has excess production capacity and could easily fill this order.
What effect would accepting this order have on Johnson pretax profit?Show your work.
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