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Mediocre Manufacturers Inc., (MMI) has a current production level of 20,000 units per month, Unit costs at this level are: Direct materials Direct labor
Mediocre Manufacturers Inc., (MMI) has a current production level of 20,000 units per month, Unit costs at this level are: Direct materials Direct labor $0.29 Variable overhead 0.45 0.16 0.22 0.21 0.44 Fixed overhead Marketing-fixed Marketing/distribution-variable Current monthly sales are 17,000 units. Bob Company has contacted MMI about purchasing 1600 units at $2.30 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is MM's change in operating profits if the special order is accepted? O $2240.00 decrease in operating profits O $5584.00 decrease in operating profits O $5584.00 increase in operating profits O $2240.00 increase in operating profits
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