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The company manufactures game tables which are sold for $60 each. To produce each game table, the company incurs $28 of variable costs and $12
The company manufactures game tables which are sold for $60 each. To produce each game table, the company incurs $28 of variable costs and $12 of allocated fixed costs. A buyer in Puerto Rico offers to purchase 3,000 tables at $36 each. The Restoration Hardware Company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income
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