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The Molis Company has the capacity to produce 1 5 , 0 0 0 haks each month. Current regular production and sales are 1 0
The Molis Company has the capacity to produce haks each month. Current regular production and sales are haks per month at a selling price of $ each. Based on this level of activity, the following unit costs are incurred:
Direct materials $
Direct labor $
Variable manufacturing overhead $
Fixed manufacturing overhead $
Variable selling expense $
Fixed administrative expense $
The fixed costs, both manufacturing and administrative, are constant in total within the relevant range of to haks per month.
The Molis Company has received a special order from a customer who wants to pay a reduced price of $ per hak. There would be no selling expense in connection with this special order. And, this order would have no effect on the company's other sales.
Suppose the special order is for haks this month. If this offer is accepted by Molis, the company's operating income for the month will:
Group of answer choices:
Increase by $
Decrease by $
Increase by $
Decrease by $
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