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Zephram Corporation has a plant capacity of 200.000 units per month. Unit costs at capacity are: Direct materials $6.00 Direct labor 6.00 Variable overhead i
Zephram Corporation has a plant capacity of 200.000 units per month. Unit costs at capacity are: Direct materials $6.00 Direct labor 6.00 Variable overhead i 2.00 Fixed overhead 3.00 9.00 2.00 Marketing-fixed Marketing/distribution-variable Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Zephram Corporation about purchasing 2,500 units at $25.00 each. Current sales would not be affected by the one-time-only special order. What is Zephram's change in operating profits if the one-time-only special order is accepted? OA $27,500 increase OB. $41,500 increase Oc. $29,000 increase OD. $21,000 increase
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