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Question: colortrigon company makes a variety of paper products one product...

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Colortrigon Company makes a variety of paper products. One product is 30 lb copier paper, packaged 3,000 sheets to a box. One box normally sells for $20. A large bank offered to purchase 6,000 boxes at $15 per box. Costs per box are as follows: $6 Direct materials Direct labor Variable overhead Flxed overhead No variable marketing costs would be incurred on the order. The company is operating significantly below the maximum productive capacity. No fixed costs are avoidable. Should Colortrigon accept the order? a. Yes, income will increase by $19,000. Ob. Yes, income will increase by $30,000. oc. No, income will decrease by $ Od. No, income will decrease by $43,000. Oe. It doesnt matter; there will be no impact on income. Previous Next
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