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Determine what effect will acceptance of offer on net income

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Question 1: It costs the company $20.90 of variable and $1.90 of allocated fixed costs to produce an industrial trash can that normally sells for $30.10. A buyer offers to purchase 2500 units at $21.90 each. They have excess capacity to handle additional production. What effect will acceptance of the offer have on net income?

Reference no: EM132559246

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