Sakura Inc. is a Japanese firm located in Hiroshima. The firm is contemplating the acceptance...
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Sakura Inc. is a Japanese firm located in Hiroshima. The firm is contemplating the acceptance of a special order has the following unit cost behavior, based on 1,000,000 units: Direct materials JPY 40 Direct labor JPY 100 Variable overhead JPY 80 Fixed overhead JPY 60 The firm currently produces 950,000 units. Another firm wants to purchase 20,000 units at a special unit price of JPY 250. The normal price per unit is JPY 400. There is an additional cost of accepting the order, a special machine for JPY 400,000. The incremental income (loss) from accepting the order is Select one: a. JPY (200,000). b. JPY (600,000). c. JPY 600,000. d. JPY 200,000
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