Help Save & Submit Submit Minor Electric has received a special one-time order for 900...
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Help Save & Submit Submit Minor Electric has received a special one-time order for 900 light foxtures (units) 57 per unit. Minor currently produces and sells 9,000 units of $10.00 each. This level represents 90% of its capacity Production costs for these units are $6.50 per unit, which includes $5.50 variable cost and $100 fixed cost To produce the special order a new machine needs to be purchased at a cost of $800 with a zero salvage Value Management expects no other changes in costs as a result of the additional production. Should the company accept the special order? Multiple Choice Yes, because net income would increase by $6,300. (2) O No, because net income would decrease by $900. No, because net income would decrease by $550. O Yes, because net income would increase by $550, No, because net income would decrease by $4,950
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