Business, 11.10.2020 23:01, phantomlizz3233
Thompson Corporation sells regulators at a normal selling price of $50 per unit. The variable cost per unit of each regulator is $20, and the company's total fixed cost is $500,000 per month. The company has excess capacity of 75,000 units per month. Management was recently contacted by a potential buyer with whom they had no prior experience. The buyer offered to buy a special order of 30,000 regulators at a discount price of $40 per unit. The special nature of the order would increase variable costs associated with it by $5 per unit over the normal variable cost. The special order would have no impact on fixed costs. If the special order is accepted, operating income will increase by $:
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Thompson Corporation sells regulators at a normal selling price of $50 per unit. The variable cost p...
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