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The Buchanan Company Has Gathered the Following Information for a Unit

Question 12

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The Buchanan Company has gathered the following information for a unit of its most popular product: The Buchanan Company has gathered the following information for a unit of its most popular product:   The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.This special order would not disturb regular sales.Special packaging and other selling expenses would be an additional -$0.50 per unit for the special order.If the special order is accepted,Buchanan's operating profits will increase by: A) $4,000. B) $6,400. C) $8,000. D) $19,000. The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.This special order would not disturb regular sales.Special packaging and other selling expenses would be an additional -$0.50 per unit for the special order.If the special order is accepted,Buchanan's operating profits will increase by:


A) $4,000.
B) $6,400.
C) $8,000.
D) $19,000.

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