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Sky Blue Plans provides financial planning for senior citizens. The costs of preparing 1,000 financial plans in the prior year were: Direct labor Variable overhead
Sky Blue Plans provides financial planning for senior citizens. The costs of preparing 1,000 financial plans in the prior year were: Direct labor Variable overhead $400,000 296.000 250,000 $946,000 Fixed overhead Total cost At the start of the current year, the company received an offer from MooseHaven, a retirement home for Moose members. MooseHaven wants Sky Blue Plans to prepare financial plans for its 200 assisted living citizens. Sky Blue has the capacity to prepare up to 1,300 plans in a given year, so this special order would not take away revenue from any of Sky Blue's current clients. MooseHaven is willing to pay $850 per plan. What will be the effect on Sky Blue Plan's profit if it agrees to prepare plans for the 200 citizens of MooseHaven? O Profit will increase by $1,500 O Profit will increase by $30,800 O Profit will increase by $48,000. Profit will increase by $40,800. O Profit will increase by $84,000. OO
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