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Dakota Company has been producing and selling 42,000 hats a year. The company has the capacity to produce 52,000 hats. The following data is available:
Selling Price per unit $30
Variable manufacturing costs per unit $13
Variable selling and administrative costs per unit $7
Total fixed manufacturing costs $128,000
Total fixed selling and administrative costs $56,000
Question 1: What is the net income being made in current situation? If a special order is accepted for 10,000 hats at a price of $25 per unit, how much would the change in net income be?
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