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Tha details below relate to an ice cream company located in Kingston, Jamaica. Although the production capacity is 500,000 units per year, the company expects
Tha details below relate to an ice cream company located in Kingston, Jamaica. Although the production capacity is 500,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $118 each. Acustomer has offered to buy 60,000 units for $90. If the company accepts this special order. it will incur variable selling costs are $12 per unit. If the special order is accepted, the effect on income would be a a. $360,000 decrease b. $540,000 decrease c. $540,000 increase d: $360,000 increase
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