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Question - Pope Company manufactures a variety of hiking boots and has received a special one-time-only order from a new customer. Pope has sufficient idle capacity to accept the special order to manufacture 1,400 pairs of boots at a price of $54.00 per pair. Pope's normal selling price is $65.00 per pair of boots. Variable manufacturing costs are $35.00 per pair and fixed manufacturing costs are $12.00 a pair. Pope's variable selling expense for its normal line of boots is $1.00 per pair.
Required - What would the effect on Pope's operating income be if the company accepted the special order?
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Each off the above projects is based on ideas for projects where there is significant information available in the form of technical guides, case studies, and from suppliers of technology. A quick Google search will furnish you with examples and ..
1.Bargains Co. reported annual net sales for 2012 and 2013 of $ 665,000 and $ 747,000, respectively. Its year end balances of accounts receivable follow: December 31, 2012, $ 61,000; and December 31, 2013, $ 93,000.
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