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Safari File Edit View History Bookmarks Window Help # A z ( S % Thu 2:38 PM Lynette Disla a E blackboard.pace.edu PACE UNIVERSITY Lynette Disla My Resource Page Courses Community ePortfolioBookstore Library Help QUESTION 7 10 points Save Answer Gallerani Corporation has received a request for a special order of 6,000 units of product A90 for $21.20 each. Product A90's unit product cost is $16.20, determined as follows Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing ove Unit product cost S 6.10 4.20 2.30 3.60 $16.20 The customer would like modifications made to product A90 that require Gallerani to rent a special mold in the amount of $21,000. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company' by: s overall net operating income would increase or decrease O b. O c O d. a. $30,000 b. $30,600 c. $9,000 d. $51,600 e. Correct answer not listed a Disla DEC oc.docx 17 3DExplanation / Answer
the company's Net Operating Income from the new special order increase to:
= ($21.2 - $16.2 ) * 6000 - special mold $21000
= 5 * 6000 - 21000
= $ 9000 (option c)
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