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JUST NEED THE CORRECT ANSWER- NO EXPLANATION! 10 Required information The following are the Wyeth Company's unit costs of making and selling an Item at
JUST NEED THE CORRECT ANSWER- NO EXPLANATION!
10 Required information The following are the Wyeth Company's unit costs of making and selling an Item at a volume of 10.000 units per month, which represents the company's capacity 01:33.42 Manufacturing: Direct Materials Direct Labour Variable Overhead Fixed Overhead Selling and Administrative: Variable Fixed $1.06 $2.06 $8.56 $0.96 $1.56 $0.66 Present sales amount to 9,000 units per month. An order has been received from a customer in a foreign market for 1.000 units. The order would not affect current sales. Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 8.000 and 10.000 units per month. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. Assume direct labour is a variable cost. How much will the company's operating income be increased or decreased) if it prices the 1.000 units in the special order at $6 each? Multiple Choice $2.500. $1.000. O $500) S400Step by Step Solution
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