The incorporated city of Orillia has asked PPP to make them 10,000 commemorative pottery plates...
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Accounting
The incorporated city of Orillia has asked PPP to make them commemorative pottery plates to celebrate their th anniversary. These would cost the same as regular PPP plates to make. The price would be $ per plate. The contract would reduce PPPs usual business by plates, as the company has no spare capacity PPP is concerned about the reported loss on the mugs they make. It is considering eliminating mugs. If mugs were discontinued, PPP would be able to make and sell an additional plates. The effect on operating profit would be
Question options:
an increase of $
none of the options
a decrease of $
an increase of $
a decrease of $
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