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Q1: whats the expected increase in revenue for this special order? Q2: whats the expected increase in total variable costs for this special order? Q3:

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Q1: whats the expected increase in revenue for this special order?
Q2: whats the expected increase in total variable costs for this special order?
Q3: if the company accepts the order what is the expected change in operating income for this special order?
Q4: what is the expected increase in total fixed costs for this special order?
Jeff's Widget Corporation produces and sells a part used in the production of bicycles. The unit costs associated with this part are as follows: $0.14 Direct materials Direct labor Variable manufacturing overhead $0.30 $0.20 $0.25 $0.89 Fixed manufacturing overhead Total cost The company's regular sales price is $1.25 per part. Saturn Company has approached Jeff's Widget Corporation with an offer to purchase 20,000 units of this part at a price of $.80. Accepting this special sales order will put idle manufacturing capacity to use and will not affect regular sales. Total fixed costs will not change

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