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Question 7 Your answer is partially correct. Try again. Pharoah Company incurs a cost of $36 per unit, of which $21 is variable, to make
Question 7 Your answer is partially correct. Try again. Pharoah Company incurs a cost of $36 per unit, of which $21 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,100 units at $31 each. Pharoah will incur additional costs of $2 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Pharoah will realize by accepting the special order, assuming Pharoah has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Increase (Decrease) Reject Accept x X Revenues 0 X Costs 0 x x Net income 0 Should Pharoah Company accept the special order? accept Pharoah company should the special order
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