Homework Answers
Spare capacity = 42967-37615 = 5352 units
Profit to be lostbon = 10869 - 5352 = 5517 units
Profit on 5517 units = (92-35-15)*5517 = $231714
Incremental income = Profit on special order - Income lost due to special order
= (80-35)*10869 - 231714
= $257391
Option c. is correct answer.
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