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Business, 19.03.2020 21:40 knightc904

Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $ 40 Variable costs per unit: Manufacturing $ 23 Marketing and administrative $ 8 Total fixed costs: Manufacturing $ 76 comma 000 Marketing and administrative $ 24 comma 000 If a special sales order is accepted for 6 comma 900 widgets at a price of $ 40 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

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