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Newman-Elaine Inc. manufactures bicycles. The cost of producing a bicycle at the company's current activity level of 9,000 units per month is: Variable manufacturing costs
Newman-Elaine Inc. manufactures bicycles. The cost of producing a bicycle at the company's current activity level of 9,000 units per month is: Variable manufacturing costs per unit $100 Fixed manufacturing costs per unit $30 The normal selling price is $160 per bicycle. The company's total productive capacity is 10,000 units per month. Newman-Elaine Inc. has received an offer from an overseas customer for 500 bicycles at $125 per unit. Compute the total differential income from accepting the special order.
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