A company contemplating the acceptance of a special order has the following unit cost behavior,...
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Accounting
A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct Materials $4 per unit Direct Labor $10 per unit Variable FOH per unit $8 Fixed FOH per unit $6 A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. If the company accepts the order, by how much will net income increase (or decrease - remember if you want to use a negative number for decrease, you need to place a minus sign in front of it)
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