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20 15 Dots Kneller Company manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 17,000

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20 15 Dots Kneller Company manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 17,000 medals each month; current monthly production is 10,000 medals. The company normally charges $91 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials $441,200 Direct labor $ 141,200 Selling and administrative $ 22.900 Fixed costs: Manufacturing $ 132,100 Selling and administrative $72,300 The company has just received a special one-time order for 400 medals at $72 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost Required: Should the company accept this special order? 8 0402 Accepted O Not accepted

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