2 $24 The following information relates to the unit product cost for a product manufactured...
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2 $24 The following information relates to the unit product cost for a product manufactured by Creamer Company: Direct materials Direct labor Variable overhead Fixed overhead Unit cost 15 30 18 587 In addition, fixed selling costs are $500,000 per year, and variable selling costs are 512 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each If the firm produces the special order, the effect on income would be a(n): Os mcrease of $540,000 Ob decrease of $40,000 Oc decrease of $360.000 Od. Increase of $360,000
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