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l + QUESTION 2 Mary Company produces tumblers which it normally sells to retailers for RMB each. The cost of manufacturing 25,000 tumblers is: Materials

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l + QUESTION 2 Mary Company produces tumblers which it normally sells to retailers for RMB each. The cost of manufacturing 25,000 tumblers is: Materials RM 10 000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total RM1 00 000 Marry also incurs 5% sales commission (RMO.30) on each tumbler. it Corporation offers Mary RM4.00 per tumbler for 3,000 tumblers. 13,!!! would sell the tumblers under its own brand name in foreign markets not yet served by Mary. If Mary accepts the offer, its xed overhead will increase from RM40,000 to RM43,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Instructions (a) Prepare an incremental analysis for the special order. Net Income Reject Accept Increasedecrease) Sales Cost Net Income (b) Should Mary accept the special order? Why or why not

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