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Evaluate what net income will

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Question 1: It costs Sheffield company $18 of variable costs and $8 of fixed costs to produce its product that sells for $41. pharaoh company, a foreign buyer, offers to purchase 3000 units at $23 each. if the special offer is accepted and produced with unused capacity, net income will:

Option a) increase $7200

Option b) decrease $7200

Option c) increase $14400

Option d) increase $11400

Reference no: EM132550616

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