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Question 8 Not yet answered The following information relates to a product produced by Victoria Ltd Marked out of 1.00 Direct materials P Flag question
Question 8 Not yet answered The following information relates to a product produced by Victoria Ltd Marked out of 1.00 Direct materials P Flag question $10 7 Direct labour Variable overheads Fixed overheads Unit cost 531 Fixed selling costs are $1,000,000 per year. Variable selling costs of $4 per unit sold are added to cover the transportation cost. Although production capacity is 600,000 units per year, Victoria expects to produce only 400,000 units next year. The product normally sells for $40 each A customer has offered to buy 60,000 units for $30 each. The customer will pay the transportation charge on the units purchased If Victoria accepts the special order, the effect on income would be Select one: $60,000 increase $180,000 increase $420,000 increase $600,000 decrease
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