Werry Company is about to introduce a new product. It is expected that the following costs would be incurred when 25,000 units are produced and sold in a year: 
Werry Company uses the absorption costing approach to cost-plus pricing as described in the text.
-After introducing the product at a markup of 90%,the company finds that it has excess capacity.A foreign dealer has offered to purchase 4,000 units of the product at a special price of $32 per unit.This sale would not disturb regular business.If the special price is accepted on the 4,000 units,the effect on total profits for the year will be a:
Definitions:
Forecast Value
The estimated or predicted value of a variable or set of variables at some point in the future.
Mean Square Error
A measure of the average of the squares of the errors—that is, the average squared difference between the estimated values and the actual value.
Sales Details
Specific information regarding the transactions, quantities, prices, and conditions under which sales activities occur.
Value of K
Often refers to a constant in various contexts, such as a specific parameter value in a mathematical formula or algorithm.
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