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2. Special Order. Johnson Industries has a relevant operating range of 60,000 per year. Their current production is 55,000 units per year. The company's
2. Special Order. Johnson Industries has a relevant operating range of 60,000 per year. Their current production is 55,000 units per year. The company's selling price and cost breakdown is follows: (worth 2.5 points). Sales price per unit Variable cost per unit Fixed cost per year $50 $30 $250,000 Southern Company has approached Johnson with a request for a onetime special order for 10,000 units and a reduced sales price of $40 per unit. Johnson's management has determined that this special order will not impact their relationships with existing customers but an additional $25,000 in fixed expenses will be incurred in order to fulfill the special order. Should Johnson Industries accept the order? Justify you answer.
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