BOOK Show Me How Structuring Special-Order Problem Harrison Ford Company has been approached by a...
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BOOK Show Me How Structuring Special-Order Problem Harrison Ford Company has been approached by a new customer with a to purchase 30,000 units of te models atence of the new customer is geographical parted from the company's other customers and existing sales would not be acted Harrison Mwy process. Speyer but only plans to produce and sal 60,000 in the coming year. The normale is 512 perunt. Ut cost information for the normale of activity is a fons Direct materiale 31.75 Direct labor 2.50 Variable overead 1.50 Fred overhead 2.25 Total $5.00 Fixed overed wit not be affected by whether or not the special orders accepted Required 1. Should the company accept or reject the special order? Reject 2. By how much will operating Income increase or decrease if the order is accepted Decrease by
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