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The following information relates to the Jasmine Company for the upcoming year, based on 406,000 units: Sales Cost of goods sold Gross margin Operating
The following information relates to the Jasmine Company for the upcoming year, based on 406,000 units: Sales Cost of goods sold Gross margin Operating expenses Operating profits Amount Per Unit $8,120,000 $32.00 6,496,000 22.00 1,624,000 690,000 10.00 3.00 $ 934,000 $ 7.00 The cost of goods sold includes $2,375,100 of fixed manufacturing overhead; the operating expenses include $223,100 of fixed marketing expenses. A special order offering to buy 56,000 units for $16.20 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? Multiple Choice $56,000 $274,400 $140,000 $290,000
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