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Please explain if I am right or wrong and why A company makes a single product that is normally sells for $60/ unit. It has
Please explain if I am right or wrong and why
A company makes a single product that is normally sells for $60/ unit. It has the capacity to produce 100,000 units per year, but currently produces only 70,000. Per-unit costs associated with the product at an annual production level of 70,000 are below: A foreign distributor wants to buy 6,000 units and has offered to pay $40 each. Additional information: - If the company accepts this order, it would incur $7,000 in additional legal costs to comply with export regulations. - No selling costs would be incurred for this order. What would be the total financial impact of accepting this offer? (Make sure to calculate the total impact, not the per-unit amount. Use a negative number to indicate a decrease in cash flows.)Step by Step Solution
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