Since there is excess capacity, no additional fixed costs will be incurred on the special order | |||
Reject | Accept | Net Income Increase (Decrease) | |
Revenues | 0 | 195,000 | 195,000 |
Costs | 0 | 143,000 | (143,000) |
Net Income | 0 | 52,000 | 52,000 |
Should accept, since additional income |
Question 7 Crane Company incurs a cost of $35 per unit, of which $19 is variable,...
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