Question

5. It costs Lax Fields $26 of variable costs and $13 of allocated fixed costs to produce an industrial trash can that sells for $59. A buyer in Argentina offers to purchase 3,500 units at $36 each. Lax Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?​

Answer 1

Explanation:

Paragraph Styles It costs Lax Fields $26 of variable costs and $13 of allocated fixed costs to produce an industrial trash can that sells for $59. A buyer in Argentina offers to purchase 3,500 units at $36 each Lax Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

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