What is the additional operating income

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Question - Toy Story, Inc., has the capacity to produce 100,000 toys per year but only produces 80,000 toys per year. The sale price is $10, the variable cost is $7 and allocated overhead equals $80,000 per year. Company B offers to buy an additional 19,000 toys but is only willing to pay $8 per toy. What is the additional operating income (loss) of accepting the offer?

Reference no: EM133168973

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