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Business, 27.06.2020 19:01 ashleymarina
Martin Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $ 16 comma 000 Direct labor incurred $ 190 comma 000 Variable manufacturing overhead $ 122 comma 000 Variable selling and administrative expenses $ 73 comma 000 Fixed manufacturing overhead $65,000 Fixed selling and administrative expenses $12,000 Units produced and sold 20 comma 000 Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3 comma 000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $ 5 comma 300 is incurred?
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