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MJ MIU-term Spring 2021 (Dr. Mohammed Omar) It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit
MJ MIU-term Spring 2021 (Dr. Mohammed Omar) It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production which normally sells for OMR 35. A foreign wholesaler offers to purchase 3,000 units at OMR 15 each the company would incur special shipping costs of OMR 1 per unit if the order were accepted. Assuming that the company has the excess operating capacity to produce the 3,000 units. If the special order is accepted, what will be the effect on net income? Select one: a. OMR 6,000 decrease b. OMR 9,000 decrease COMR 45,000 increase O d. None of the answers are correct e. OMR 6,000 increase o would is wust o
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