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Martin Incorporated Provided the Following Information Regarding Its Only Product

Question 68

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Martin Incorporated provided the following information regarding its only product: Martin Incorporated provided the following information regarding its only product: Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1200 units at a sale price of $49 per product? The 1200 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) ) A) Decrease by $24,468 B) Decrease by $34,332 C) Increase by $24,468 D) Increase by $34,332 Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 1200 units at a sale price of $49 per product? The 1200 units would not require any variable selling and administrative expenses. (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearest cent.) )


A) Decrease by $24,468
B) Decrease by $34,332
C) Increase by $24,468
D) Increase by $34,332

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