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Assuming There Is Excess Capacity, What Would Be the Effect

Question 56

Multiple Choice

Assuming there is excess capacity, what would be the effect of accepting a special order for 2,000 units at a price of $64.00 per phone?


A) Net income would decrease by $32,000.
B) Net income would increase by $640,000.
C) Net income would increase by $12,000.
D) Net income would increase by $36,000.

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