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It Costs Fortune Company $12 of Variable and $5 of Fixed

question 73

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It costs Fortune Company $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35.A foreign wholesaler offers to purchase 1,000 scales at $16 each.Fortune would incur special shipping costs of $2 per scale if the order were accepted.Fortune has sufficient unused capacity to produce the 1,000 scales.If the special order is accepted, what will be the effect on net income?


Definitions:

Adolescents

Individuals in the developmental stage ranging roughly from 10 to 19 years old, characterized by rapid physical, emotional, and intellectual changes.

Slip

A minor mistake or error in judgement, often used in the context of recovery from addiction, where it refers to a small or temporary setback or return to substance use.

Lapse

A temporary failure of concentration, memory, or judgment.

Relapse

The return to a previous state of illness or problematic behavior after a period of improvement.

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