It costs Fina Company $8 of variable and $3 of fixed costs to produce one folding...
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It costs Fina Company $8 of variable and $3 of fixed costs to produce one folding chair which normally sells for $42. A foreign wholesaler offers to purchase 4,500 chairs at $25 each. Fina would incur special shipping costs of $2 per chair if the order were accepted. Fina has sufficient unused capacity to produce the 4,500 chairs. If the special order is accepted, what will be the effect on net income? $139,500 $67,500 O $49,500 $63,000 It costs Fina Company $8 of variable and $3 of fixed costs to produce one folding chair which normally sells for $42. A foreign wholesaler offers to purchase 4,500 chairs at $25 each. Fina would incur special shipping costs of $2 per chair if the order were accepted. Fina has sufficient unused capacity to produce the 4,500 chairs. If the special order is accepted, what will be the effect on net income? $139,500 $67,500 O $49,500 $63,000
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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