The woody company manufacturers slippers and sells them at $10 a pair. Variable manufacturing cost...
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The woody company manufacturers slippers and sells them at $10 a pair. Variable manufacturing cost is $4.50 a pair, and allocated fixed manufacturing cost is 1.50 a pair. It has enough idle capacity available to accept a one time only special order of 20 000 pairs of slippers at $6 a pair. Woody will not incur any marketing costs as a result of the special order. What would the effects on operating income be if the special order could be accepted without affecting normal sales:
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