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Salish Industries Manufactures a Product with the Following Costs Per

Question 59

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Salish Industries manufactures a product with the following costs per unit at the expected production of 60,000 units: Salish Industries manufactures a product with the following costs per unit at the expected production of 60,000 units:   The company has the capacity to produce 70,000 units. The product regularly sells for £60. A wholesaler has offered to pay £55 each for 5,000 units. If the special order is accepted, the effect on operating income would be a A)  £42,000 decrease. B)  £67,000 increase. C)  £110,000 increase. D)  £182,000 decrease. The company has the capacity to produce 70,000 units. The product regularly sells for £60. A wholesaler has offered to pay £55 each for 5,000 units. If the special order is accepted, the effect on operating income would be a


A) £42,000 decrease.
B) £67,000 increase.
C) £110,000 increase.
D) £182,000 decrease.

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