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Show Calculation co. produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level
Show Calculation
co. produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 20,000 units per month (80% of capacity) is as follows: Sale price per unit$300 Total variable cost per unit Manufacturing S&A $110 $50 Total fixed cost $1,280,000 Manufacturing S&A $560 000 A special order has been received from a local customer for 5,000 units at a price of delivered this month. By how much would this special order increase (decrease) the compan operating income for the month? $200 per unit to be y's a) $200,000 $ b) $136,000 c) ($500,000) d) ($260,000) e) None of the above
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