It costs Waterway Industries $28 of variable costs and $14.40 of allocated fixed costs to produce an industrial trash can that sells for $72. A buyer in Mexico offers to purchase 3000 units at $39 each. Waterway Industries 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 Waterway Industries $28 of variable costs and $14.40 of allocated fixed costs to produce an industrial trash can that sells for $72. A buyer in Mexico offers to purchase 3000 units at $39 each.