What effect will acceptance of the offer


It costs Lannon Fieds $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 2,000 units at $18 each. Lannon has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

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Accounting Basics: What effect will acceptance of the offer
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