In Harley Company it costs $30 per unit ($20 variable and $10 fixed) to make a product that normally sells for $45. A foreign wholesaler offers to buy 4,000 units at $23 each. Harley will incur special shipping costs of $1 per unit. Assuming that Harley has excess operating capacity, indicate the net income (loss) Harley would realize by accepting the special order.

$1.99

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March 2, 2012

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