Effect of accepting the special order on melville operation

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Reference no: EM13127010

Assume Melville can sell 58,000 units of Pong to regular customers next year and sale of 6000 units to this special order customer will result in losing the contribution on sales to regular customers at the regular price due to the 60,000 unit maximum production capacity. If Mowen Company offers to buy the special order units at $65 per unit, the effect of accepting the special order on Melville's operating income next year should be a what?

Reference no: EM13127010

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