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Lutka Company incurs a cost of $44 per unit, of which $28 is variable, to make a product that normally sells for $66. A foreign

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Lutka Company incurs a cost of $44 per unit, of which $28 is variable, to make a product that normally sells for $66. A foreign wholesaler offers to buy 8,000 units at $46 each. Lutka will incur additional costs of $5 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Lutka will realize by accepting the special order, assuming Lutka has sufficient excess operating capacity. a. Should Lutka Company accept the special order? (10 marks) Net Income Rejec ceepincrease (Decrease Revenues Costs Net income b. Should Lutka Company accept the special order if Lutka did not have sufficient excess operating capacity

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