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managerial accounting A company currently sells 6,000 units per month, but could produce up to 8,000 per month with its available capacity. The company has

managerial accounting

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A company currently sells 6,000 units per month, but could produce up to 8,000 per month with its available capacity. The company has received a special order from an international customer to purchase 1,500 units at a price of $80 per unit. The company currently sells the product to domestic customers for $95 per unit. Per unit costs are shown below: Direct Materials 49.50 Direct Labor 16.50 Variable overhead 9.50 Fixed overhead 3.50 Management has determined that the additional shipping costs for the international delivery would be $4 per unit. If the company accepts the special order, what is the effect on operating income

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