Lakeside Incorporated produces a product that currently sells for $60 per unit. Current...

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Accounting

Lakeside Incorporated produces a product that currently sells for $60 per unit. Current production costs per unit include direct materials, $16.00; direct labor, $18.00; variable overhead, $11.00; and fixed overhead, $11.00. Lakeside has received an offer from a nonprofit organization to buy 9,200 units at $46.00 per unit. Lakeside currently has unused production capacity.
Required:
Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.
Should Lakeside accept this special sales order?

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