It costs Concord Corporation $13 of variable and $5 of fixed costs to produce one scale...
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It costs Concord Corporation $13 of variable and $5 of fixed costs to produce one scale which normally sells for $49. A foreign wholesaler offers to purchase 3400 scales at $15 each. Concord Corporation would incur special shipping costs of $1 per scale if the order were accepted. Concord has sufficient unused capacity to produce the 3400 scales. If the special order is accepted, what will be the effect on net income? $51000 increase $3400 decrease $54400 decrease $3400 increase It costs Concord Corporation $13 of variable and $5 of fixed costs to produce one scale which normally sells for $49. A foreign wholesaler offers to purchase 3400 scales at $15 each. Concord Corporation would incur special shipping costs of $1 per scale if the order were accepted. Concord has sufficient unused capacity to produce the 3400 scales. If the special order is accepted, what will be the effect on net income? $51000 increase $3400 decrease $54400 decrease $3400 increase
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Answer rating: 100% (QA)
Option D 3400 increase Working Benefit of Accepting Special Or... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date:
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