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Lucas Company produces 16,000 units, operating at 80 percent of capacity. Spielberg Corp. offers to buy 4,000 units at $20 per unit. Coppola, Inc. wants
Lucas Company produces 16,000 units, operating at 80 percent of capacity. Spielberg Corp. offers to buy 4,000 units at $20 per unit. Coppola, Inc. wants 3,000 units at $25 per unit. If Lucas' variable costs are $10 per unit, which offer should it accept and what will be the effect on net income?
Group of answer choices
Spielberg, $80,000 increase
Coppola, $45,000 increase
Coppola, $75,000 increase
Spielberg, $40,000 increase
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