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2,300 Super Ski Lab Inc. produces high-end snowboards for professional athletes. The company's plant has an annual capacity of 2,500 snowboards. Annual sales and cost
2,300 Super Ski Lab Inc. produces high-end snowboards for professional athletes. The company's plant has an annual capacity of 2,500 snowboards. Annual sales and cost data concerning these snowboards is shown below: Annual sales at the regular sales price Regular sales price per snowboard $7,000 Manufacturing costs: Variable cost per snowboard $3,500 Fixed cost-annually $1,500,000 Packaging expense per snowboard $400 The company has received a special order from a ski resort to purchase 300 snowboards at a price of $6,400 each. There would be no packaging expenses associated with this order. What would be the effect of the company accepting the order? Increase prohts by 5580,000 Increase profits by $560,000 Increase profits by $364,348 Increase profits by $870,000
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