Hikoki Inc. is a Japanese firm located in Nagasaki. The firm manufactures a ball with...

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Accounting

Hikoki Inc. is a Japanese firm located in Nagasaki. The firm manufactures a ball with a unit variable cost of JPY 100 and a unit sales price of JPY 176. Hikoki incurs a JPY 480,000 fixed manufacturing cost when 10,000 units are produced and sold. The firm's capacity is producing at 10,000, and the firm currently produces 9,000 toys. The firm has a one-time opportunity to sell an additional 1,000 units at JPY 140 each in a foreign market, which would not affect its present sales. The acceptance of the special order would affect net income as follows: Select one: a. Income would decrease by JPY 8,000,000. b. Income would increase by JPY 140,000,000. c. Income would increase by JPY 40,000,000. d. Income would increase by JPY 8,000,000

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