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Reggie Corporation Manufactures a Single Product with the Following Unit

Question 24

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Reggie Corporation manufactures a single product with the following unit costs for 1,000 units: Reggie Corporation manufactures a single product with the following unit costs for 1,000 units:   Recently, a company approached Reggie Corporation about buying 100 units for $5,100 each.Currently, the models are sold to dealers for $7,800.Reggie Corporation's capacity is sufficient to produce the extra 100 units.No additional selling expenses would be incurred on the special order. - How much will income change if the special order is accepted? A)  increase by $398,400 B)  decrease by $180,000 C)  increase by $111,600 D)  no change Recently, a company approached Reggie Corporation about buying 100 units for $5,100 each.Currently, the models are sold to dealers for $7,800.Reggie Corporation's capacity is sufficient to produce the extra 100 units.No additional selling expenses would be incurred on the special order.
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How much will income change if the special order is accepted?


A) increase by $398,400
B) decrease by $180,000
C) increase by $111,600
D) no change

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