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Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you Harvey Inc., a manufacturer of bikes, has received a special order
Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you
Harvey Inc., a manufacturer of bikes, has received a special order of 40 bikes for a price of $2,750 per bike. The company's cost data indicates that it incurs $250,000 as total variable cost and $75,000 as total fixed cost for 100 units. If the company has excess capacity to take this order, what will be the effect on operating income? Select one: O Increase in operating income by $25,000 O Increase in operating income by $110,000 Decrease in operating income by $110,000 O Decrease in operating income by $50,000 O Increase in operating income by $10,000 O Decrease in operating income by $10,000Step by Step Solution
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