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Texas Company produces and sells 22,000 units of a single product. Costs associated with this level of production are as follows: Direct materials $15 Direct
Texas Company produces and sells 22,000 units of a single product. Costs associated with this level of production are as follows: Direct materials $15 Direct manufacturing labor 45 Variable manufacturing overhead 25 Fixed manufacturing overhead 40 Total $124 The product normally sells for $160 per unit. Texas Company has received a special order to sell 2,000 units at $120 per unit. Texas Company has excess production capacity. Required: Compute the amount by which the operating income of Texas Company would change if the order were accepted
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