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Question 44 9 pts Geographer Company produces measuring tools for engineers. Their machinery has a capacity of 4,500 hours, but the Company currently uses 4,000
Question 44 9 pts Geographer Company produces measuring tools for engineers. Their machinery has a capacity of 4,500 hours, but the Company currently uses 4,000 of those hours. Geographer Company currently produces and sells 2,500 units at a selling price of $50. Total Variable Costs are $15 per unit, which includes $5 per unit of advertising costs. The fixed costs for the company are $100,000 Landslide Company approached Geographer Company with an offer to buy 320 units at a special price of $30 per unit. If Geographer Company accepts this offer, they would use up the remaining 500 hours they had available. Additionally, the Company would have to pay overtime to workers producing the extra units, so variable manufacturing costs would increase by an additional $10 per hour, however, the company would save on the $5 advertising per unit 1) If Geographer Company accepts the special order, by how much would Operating Income Change? 2) Would the change in Operating Income be an increase or decrease? 3) What would be the minimum per-unit price that Geographer Company would accept the special offer
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