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Able Company's Unit Manufacturing Cost Is  Variable Costs $50 Fixed Costs 25\begin{array}{lr}\text { Variable Costs } & \$ 50 \\\text { Fixed Costs } & 25\end{array}

Question 91

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Able Company's unit manufacturing cost is:  Variable Costs $50 Fixed Costs 25\begin{array}{lr}\text { Variable Costs } & \$ 50 \\\text { Fixed Costs } & 25\end{array} A special order for 2,000 units has been received from a foreign company.The unit price requested is $55.The normal unit price is $80.If the order is accepted, unit variable costs will increase by $2 for additional freight costs.If the order is accepted, incremental profit (loss) will be


A) $(46,000) .
B) $6,000.
C) $(40,000) .
D) $10,000.

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