It costs Wildhorse Company $17 of variable costs and $3 of fixed costs to produce...

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Accounting

It costs Wildhorse Company $17 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capacity. The product sells for $27. Homer Industries offers to purchase 6100 units at $19 each. In the deal, Wildhorse will incur special shipping costs of $1.50 per unit. If the special offer is accepted and produced with unused capacity, net income will:
decrease $48800.
increase $3050.
decrease $6100.
increase $12200.
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