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Penny's Petals produces artificial flower arrangements. The cost of producing and selling a flower arrangement is as follows: Direct Materials $2220 Direct Labour $4.35 Variable

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Penny's Petals produces artificial flower arrangements. The cost of producing and selling a flower arrangement is as follows: Direct Materials $2220 Direct Labour $4.35 Variable Manufacturing Overhead $1.88 Fixed Manufacturing Overhead $12.90 Variable Selling & Administrative Expense $1.35 Fixed Selling & Administrative Expense $5.03 The normal selling price of the product is $54.68 per unit. The company's current capacity is 70.000 flower arrangements per month An order has been received from a one-time customer for 2,000 units to be delivered this month at a special discounted price. This order would have no effect on the companys normal sales and would not change the total amount of the company foxed costs The variable selling and administrative expense would be 50.83 less per unit on this order than on normal sales Direct tabour is a variable cost for this company Required ALL CALCULATIONS MUST BE SHOWN Suppose there is capacity to produce the units required by the one time customer and the special discounted price on the special order is $49.58 per unit By how much would this special-ordet increase or decrease the company's operating income for the month? Should the company accept this offer

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