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Snow Industries produces an item with the following costs per unit at the expected production of 30,000 units: . Direct materials........... $ 5 . Direct
Snow Industries produces an item with the following costs per unit at the expected production of 30,000 units: . Direct materials........... $ 5 . Direct labor.... $15 . Variable manufacturing overhead.... $ 8 Fixed manufacturing overhead....... $6 The company has the capacity to produce 60,000 units. The product regularly sells for $45. A new potential customer has offered to purchase 2,000 units for $40 each. If Snow Industries accepts the special order, what is the effect on the net income of Snow Industries? A. $10,000 decrease C B. $12,000 increase C. $24,000 increase CD. $34,000 increase c E. $40,000 increase
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