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Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100 000 as per year but is currently
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Answer : A) Increase by $83,000

Incremental Analysis of Special order

Sales Revenue ( 3100*300) 930,000
Less : Variable cost (3100*270) 837,000
Incremental Contribution Margin 93,000
Less : Additional Fixed cost 10,000
Incremental Profit 83,000

Increase in Profit if Special order is Accepted = 83,000

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