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Piersall Company makes a product which normally sells for $18 per unit. A large company offers to puchase 3,000 units for $14 per unit. Manufacturing
Piersall Company makes a product which normally sells for $18 per unit. A large company offers to puchase 3,000 units for $14 per unit. Manufacturing costs per unit are as follows: $8 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead No variable marketing costs would be incurred on the order. No fixed costs are unavoidable. Should Piersall accept the order? O A. Yes, income will increase by $6,000 O B. No, income will decrease by $9,000 C. No, income will decrease by $6,000 O D. Yes, income will increase by $9,000
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