Question: It costs Crane Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign
It costs Crane Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 5800 units at $21 each. Crane would incur special shipping costs of $2 per unit if the order were accepted. Crane has sufficient unused capacity to produce the 5800 units. If the special order is accepted, what will be the effect on net income? O $104400 increase O $5800 increase O $5800 decrease O $17400 increase
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