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Question 13 Back Horse Corporation mutatures a product with the tolowing het ut ants at a volume of 2.000 D $100 Octo 40 Manufacturing
Question 13 Back Horse Corporation mutatures a product with the tolowing het ut ants at a volume of 2.000 D $100 Octo 40 Manufacturing med 00% variable 75 Seling expenses 50% variat 25 Administrative expenses (10% variable) 10 Total per unit $200 1.66 A company recently approached Black Horse's management with an offer to purchase 215 units for $275 each Black Horse currently sells the product to dealers for $400 each. Black Horse's capacity is sufficient to produce the extra 215 units. No selling expenses would be incianed on the special order. If Black Horse's management accepts the offer, profits will O Decrease by $24.412.50 O increase by $24412.50 O Decmase by $60.000 O increase by $23.327.50
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