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Minor Electric has received a special one-time order for 1,000 light fixtures (units) at $10 per unit. Minor currently produces and sells 7,500 units at
Minor Electric has received a special one-time order for 1,000 light fixtures (units) at $10 per unit. Minor currently produces and sells 7,500 units at $12.00 each. This level represents 75% of its capacity. Production costs for these units are $9.00 per unit, which includes $7.00 variable cost and $2.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $900 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. Should the company accept the special order? Multiple Choice No, because net income would decrease by $1,000. yes, because net income would increase by $10,000. No, because net income would decrease by $7,000 yes, because net income would increase by $2100. No, because net income would decrease by $2,100
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