It costs a company $14 of variable costs and $6 of allocated fixed costs to...
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Accounting
It costs a company $14 of variable costs and $6 of allocated fixed costs to produce a product that sells for $30. A buyer offers to purchase 3,000 units at $18 each. The company has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Question 2 options: a) decrease $27,000 b) decrease $4,000 c) increase $12,000
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