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Flint Company is a leading manufacturer of sunglasses. One of Flint's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Flint about purchasing 28,600 pairs of these sunglasses.
Flint's unit manufacturing cost, based on a full capacity of 241,000 units, is as follows:.
Direct materials $6 Direct labor 4 Manufacturing overhead (75% fixed) 24 Total manufacturing costs $34
Problem 1: What would be the effect on Flint's income if the special order were accepted?
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