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mels company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $59. A foreign

mels company incurs a cost of $35 per unit, of which $19 is variable, to make a product that normally sells for $59. A foreign wholesaler offers to buy 6,300 units at $32 each. mel will incur additional costs of $1 per unit to imprint a logo and to pay for shipping.

Calculate the increase or decrease in net income mel will realize by accepting the special order, assuming mel has sufficient excess operating capacity. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

Net Income Increase (Decrease)

Incremental revenue

$enter a dollar amount

Incremental cost

enter a dollar amount

Increase (decrease) in net income

$enter a total amount

Should mel accept the special order?

mel

should... accept or reject

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