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What will be the effect on operating income

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Question - New Castle Company has the following data about its only product:

Fixed manufacturing costs $72,000

Fixed selling and administrative costs $ 80,000

Variable manufacturing costs $1,030,000

Variable selling and administrative costs $120,000

Selling unit $125

Units produced and sold 23,000

Assume there is excess capacity. The company has received a special order for 1,000 units at $80.00 per unit. If the special order is accepted, what will be the effect on operating income?

Reference no: EM132480429

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