It costs Blakeley Company $22.10 of variable and $2.20 of allocated fixed costs to produce an industrial trash can that normally sells for $31.30. A buyer offers to purchase 2,200 units at $21.00 each. Blakeley has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?
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Home » Business » It costs Blakeley Company $22.10 of variable and $2.20 of allocated fixed costs to produce an industrial trash can that normally sells for $31.30. A buyer offers to purchase 2,200 units at $21.00 each.