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The following information relates to the Jasmine Company for the upcoming year, based on 432,000 units: Amount Per Unit Sales $8,640,000 $84.00 Cost of goods
The following information relates to the Jasmine Company for the upcoming year, based on 432,000 units: Amount Per Unit Sales $8,640,000 $84.00 Cost of goods sold 6,912,000 48.00 Gross margin 1,728,000 36.00 Operating expenses 1,080,000 9.50 Operating profits $ 648,000 $26.50 The cost of goods sold includes $2,246,400 of fixed manufacturing overhead; the operating expenses include $302,400 of fixed marketing expenses. A special order offering to buy 82,000 units for $21.40 per unit has been made to Jasmine. Fortunately, there will be no additional fixed costs associated with the order and Jasmine has sufficient capacity to handle the order. How much will operating profits Increase if Jasmine accepts the special order
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