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Q5 It costs Sheridan Company $10 of variable and $6 of fixed costs to produce one-bathroom scale, which normally sells for $37.A foreign wholesaler offers
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It costs Sheridan Company $10 of variable and $6 of fixed costs to produce one-bathroom scale, which normally sells for $37.A foreign wholesaler offers to purchase 940 scales at $14 each, Sheridan would incur special shipping costs of $2 per scale it the order was accepted. Sheridan has sufficient unused capacity to produce the 940 scales. If the special order is accepted, what will be the effect on net income? O $13160 increase $1880 decrease O $1880 increase O $3760 decrease Step by Step Solution
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