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Sanka Company produces Kitchen cabinets for homebuilders across the western United States. The costs are as follows: Direct Materials $100/unit Direct Labor $50/unit Variable overhead

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Sanka Company produces Kitchen cabinets for homebuilders across the western United States. The costs are as follows: Direct Materials $100/unit Direct Labor $50/unit Variable overhead $20/unit Selling expenses $20/unit Total floed overhead $400,000 Selling price/cabinet $450 Wellington Corp. has offered Sanka $175 per cabinet for a special order of 1,000 cabinets. Watson has available capacity to fulfil the order. Should Watson accept the special order? O A No, accepting the special order would decrease its operating income by $30,000 B. Yes, accepting the special order would increase its operating income by $5,000 C. No, accepting the special order would decrease its operating income by $15,000 OD. Yes, accepting the special order would increase its operating income by $20,000

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