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1. (20 pts.) Java Company produces and sells 22,000 units of a coffee maker every year. Costs associated with this level of production are as
1. (20 pts.) Java Company produces and sells 22,000 units of a coffee maker every year. Costs associated with this level of production are as follows: The product normally sells for $140 per unit. a) What is the current contribution margin? A hotel chain wants to place a special order for 2,000 units and pay $100 per unit. Java Company has excess production capacity. b) Compute the amount by which the operating income of Java Company would change if the special order was accepted
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