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Wildhorse Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $58. A
Wildhorse Company incurs a cost of $36 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,100 units at $31 each. Wildhorse will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Wildhorse will realize by accepting the special order, assuming Wildhorse has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Revenues $ Costs Net income $ Net Income Reject Accept Increase (Decrease) $ $ $ $ Should Wildhorse Company accept the special order? Wildhorse company should the special order.
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