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It costs garner company $12 of variable and $5 of fixedcosts to produce one bathroom scale which normally sells for $35. aforeign wholesaler offers to purchase 2,000 scales at $15 each. garner would incur special shipping costs of $1 per scale if theorder were accepted. garner has sufficient unused capacity toproduce the 2,000 scales. if the special order is accepted, whatwill be the effect on net income?
a. $6,000 decrease
b. $4,000 decrease
c. $30,000 increase
d. $4,000 increase
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It costs garner company $12 of variable and $5 of fixedcosts to produce one bathroom scale which nor...
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