The following information relates to the Jasmine Company for the upcoming year, based on 430,000 units:...

 

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The following information relates to the Jasmine Company for the upcoming year, based on 430,000 units: Sales Cost of goods sold Gross margin Operating expenses Operating profits Amount $8,600,000 6,880,000 1,720,000 1,050,000 $ 670,000 Per Unit $80.00 46.00 34.00 9.00 $25.00 The cost of goods sold includes $2,257,500 of fixed manufacturing overhead; the operating expenses include $297,500 of fixed marketing expenses. A special order offering to buy 80,000 units for $21.00 per unit has been made to Jasmine. Fortunately, there will be no additional fixed costs associated with the order and Jasmine has sufficient capacity to handle the order. How much will operating profits increase if Jasmine accepts the special order? The following information relates to the Jasmine Company for the upcoming year, based on 430,000 units: Sales Cost of goods sold Gross margin Operating expenses Operating profits Amount $8,600,000 6,880,000 1,720,000 1,050,000 $ 670,000 Per Unit $80.00 46.00 34.00 9.00 $25.00 The cost of goods sold includes $2,257,500 of fixed manufacturing overhead; the operating expenses include $297,500 of fixed marketing expenses. A special order offering to buy 80,000 units for $21.00 per unit has been made to Jasmine. Fortunately, there will be no additional fixed costs associated with the order and Jasmine has sufficient capacity to handle the order. How much will operating profits increase if Jasmine accepts the special order?

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