Rexeleg Company Manufactures a Product with the Following Costs Per

question 99

Multiple Choice

Rexeleg Company manufactures a product with the following costs per unit at the expected production of 40,000 units:
The company has the capacity to produce 50,000 units.The product regularly sells for $50.A wholesaler has offered to pay $43 per unit for 3,000 units.

If the firm chooses to accept the special order and reject some regular sales, the effect on operating income would be a:

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