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Question 6 5 pts The following information relates to a product produced by Creamer Company: Direct materials $22.74 Direct labor 18.2 Variable overhead 30.72 Fixed
Question 6 5 pts The following information relates to a product produced by Creamer Company: Direct materials $22.74 Direct labor 18.2 Variable overhead 30.72 Fixed overhead 28.56 Fixed selling costs are $474,776 per year. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $200 each. A customer has offered to buy 60,000 units for $120 each. If the firm produces the special order, what is the effect on income? Report gains as a positive number. Report losses as a negative number (with a minus sign)
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