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The following operating information reports the results of Chappell Company's production and sale of 12,500 air-conditioned motorcycle helmets last year. Based on early market forecasts,
The following operating information reports the results of Chappell Company's production and sale of 12,500 air-conditioned motorcycle helmets last year. Based on early market forecasts, Chappell expects the same results this year. Sales Variable manufacturing expenses Fixed manufacturing expenses Variable selling and administrative expenses Fixed selling and administrative expenses $1,920,000 880,000 272,000 128,000 224,000 The American Motorcycle Club has offered to purchase 1,500 helmets at a price of $100 each. Chappell has sufficient idle capacity to fill the order, which would not affect the company's cost structure or regular sales. If Chappell accepts this order, by how much will its income increase or decrease? Operating income will by s
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