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please highlight the answer and show your work Chukchi Corporation has received a request for a special order of 2,000 units of product B74 for
please highlight the answer and show your work
Chukchi Corporation has received a request for a special order of 2,000 units of product B74 for $45. each. The normal selling price of this product is $95. each, but the units would need to be modified slightly for the customer. The normal unit product cost of product B74 is computed as follows: The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like some modifications made to product B74 that would decrease the variable costs by $2.80 per unit and that would require a one-time investment of $15.000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. Required: By how much would the company's net income increase or decrease as a result of this special order Step by Step Solution
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