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Cullumber Company incurs a cost of $36 per unit, of which $19 is variable, to make a product
that normally sells for $57. A foreign wholesaler offers to buy 5,300 units at $32 each.
Cullumber will incur additional costs of $2 per unit to imprint a logo and to pay for shipping.
Compute the increase or decrease in net income Cullumber will realize by accepting the special
order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts
using either a negative sign preceding the number eg. -45 or parentheses eg.(45). Should
Cullumber Company accept the special order? Cullumber Company should the special order.

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Cullumber Company incurs a cost of $36 per unit, of which $19 is vari.pdf

  • 1. Cullumber Company incurs a cost of $36 per unit, of which $19 is variable, to make a product that normally sells for $57. A foreign wholesaler offers to buy 5,300 units at $32 each. Cullumber will incur additional costs of $2 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Cullumber will realize by accepting the special order, assuming Cullumber has sufficient excess operating capacity. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg.(45). Should Cullumber Company accept the special order? Cullumber Company should the special order.