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The following information relates to a product produced by the Creamer Company: Direct Materials Direct Labor VOH FOH Unit cost $24 15 30 $87 Fixed
The following information relates to a product produced by the Creamer Company: Direct Materials Direct Labor VOH FOH Unit cost $24 15 30 $87 Fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects its customer demand to only be 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each. Variable selling costs cannot be avoided in this offer. What impact will this special order have on Creamer's profit if it accepts the offer
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