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What is the differential income realized by Drake

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Question - Drake Co. received an offer from a potential customer for 1,000 units of its most popular product at a special sales price of $9. The company's monthly production capacity is 6,250 units. It is currently producing 5,000 units a month. The normal sales price is $15. The total unit manufacturing costs $10.00, which includes $3.75 of fixed costs. What is the differential income realized by Drake if the special order is accepted?

Reference no: EM132905743

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