12. A customer has requested that Coolidge Corporation fill a special order for 2,000 units...
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12. A customer has requested that Coolidge Corporation fill a special order for 2,000 units for $35.00 a unit. While the product would be modified slightly for the special order, the normal unit product cost is $21 : Direct Materials: $6 Direct Labor: $4 Variable Manufacturing Overhead: $3 Fixed Manufacturing Overhead: $8 Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to the product that would increase the variable costs by $1.20 per unit and that would require an investment of $15,000 in special printers that would have no salvage value. The company has maximum capacity of producing 30,000 units per year and there is a current demand for all 30,000 units. The company eurrently sells 30,000 units per year for $31.00 per unit. If the special order is accepted, the company's overall net operating income would increase (decrease) by: a. $(46,000) b. $(9,400) c. $0 d. $26,600
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