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Thompson Company had the following results of operations for the past year: A foreign company (whose sales will not affect Thompson's market) offers to buy

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Thompson Company had the following results of operations for the past year: A foreign company (whose sales will not affect Thompson's market) offers to buy 4,000 units at $7.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300. If Thompson accepts the offer, its profits will: A. Increase by $30,000 B. Increase by $6,000 C. Decrease by $6,000 D. Increase by $5,200 E. Increase by $4,300 6. Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year. A customer has offered to buy an additional 20,000 units at $32 each and sell them outside the country so as not to compete with Wade. The following data are available: In producing 20,000 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $6 per unit would be incurred. What is the effect on income if Wade accepts this order? A. Income will decrease by $4 per unit. B. Income will increase by $4 per unit. C. Income will increase by $5 per unit. D. Income will decrease by $5 per unit. E. Income will increase by $11 per unit

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