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The Sun Rise Company produces and sells a single product called Beta. The company has production capacity to produce up to 30,000 units a year.
The Sun Rise Company produces and sells a single product called Beta. The company has production capacity to produce up to 30,000 units a year. The company is currently operating at 18,000 units @ $100 per unit. Variable cost per unit is $55 and total fixed cost is $495,000. Sun Rise received a special order for 15,000 units at $70 per unit. If the company accepts this offer, the company will have to forgo (decline) some of its regular customers. 2. Should Jordan accept or reject the special order and what effects the decision will have on the net operating income? a. Accept, because the net income will increase by $225,000 b. Accept, because the net income will increase by $90,000 c. Reject, because the net income will decrease by $22,500 d. Reject, because the net income will decrease by $187,500 e. None of the above
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