The Peterson Corporation manufactures a product that it sells for $73.50. The variable costs are $37.00 per unit and the

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answerhappygod
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The Peterson Corporation manufactures a product that it sells for $73.50. The variable costs are $37.00 per unit and the

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The Peterson Corporation manufactures a product that it sellsfor $73.50. The variable costs are $37.00 per unit and the annualfixed costs are $992,500. Peterson’s capacity is 106,500 units peryear but is currently only selling 88,500 units per year. This isnot expected to change in the future.
Peterson was approached to provide 31,500 units as a one-timeorder for a price of $49.00 per unit. If Peterson accepts thespecial order, what will be the impact on operating income?
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