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"Managerial Accounting" course Q5) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capacity, net income will: (a) decrease $6,000. (c) increase $12,000. (b) increase $6,000. (d) increase $9,000. Q6) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200. Product Z200 sells for $30. A buyer offers to purchase 3,000 units at $18 each. The seller will incur special shipping costs of $5 per unit. If the special offer is accepted and produced with unused capacity, net income will: (a) increase $3,000. (c) decrease $12,000. (b) increase $12,000. (d) decrease $3,000. *** I want a clear and full answer. Thank you so much***

"Managerial Accounting" course Q5) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capacity, net income will: (a) decrease $6,000. (c) increase $12,000. (b) increase $6,000. (d) increase $9,000. Q6) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200. Product Z200 sells for $30. A buyer offers to purchase 3,000 units at $18 each. The seller will incur special shipping costs of $5 per unit. If the special offer is accepted and produced with unused capacity, net income will: (a) increase $3,000. (c) decrease $12,000. (b) increase $12,000. (d) decrease $3,000. *** I want a clear and full answer. Thank you so much***

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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"Managerial Accounting" course Q5) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capacity, net income will: (a) decrease $6,000. (c) increase $12,000. (b) increase $6,000. (d) increase $9,000. Q6) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200. Product Z200 sells for $30. A buyer offers to purchase 3,000 units at $18 each. The seller will incur special shipping costs of $5 per unit. If the special offer is accepted and produced with unused capacity, net income will: (a) increase $3,000. (c) decrease $12,000. (b) increase $12,000. (d) decrease $3,000. *** I want a clear and full answer. Thank you so much***
Transcribed Image Text:"Managerial Accounting" course Q5) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200 that sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the special offer is accepted and produced with unused capacity, net income will: (a) decrease $6,000. (c) increase $12,000. (b) increase $6,000. (d) increase $9,000. Q6) It costs a company $14 of variable costs and $6 of fixed costs to produce product Z200. Product Z200 sells for $30. A buyer offers to purchase 3,000 units at $18 each. The seller will incur special shipping costs of $5 per unit. If the special offer is accepted and produced with unused capacity, net income will: (a) increase $3,000. (c) decrease $12,000. (b) increase $12,000. (d) decrease $3,000. *** I want a clear and full answer. Thank you so much***
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