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6. It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an
industrial trash can that sells for $30. A buyer in Mexico offers to purchase 3,000 units at $18
each. Lannon 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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6. It costs Lannon Fields $14 of variable costs and $6 of allocated .pdf

  • 1. 6. It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 3,000 units at $18 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?