Business, 19.03.2021 04:00 patrickdolano
It costs Orkid Company $17 of variable costs and $3 of fixed costs to produce its product. The company currently has unused capacity. The product sells for $25. Homer Industries offers to purchase 5,000 units at $19 each. In the deal, Orkid will incur special shipping costs of $1.50 per unit. If the special offer is accepted and produced with unused capacity, net income will: increase $2,500. increase $10,000. decrease $30,000. decrease $5,000.
Answers: 1
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