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4 03:12:53 Walton Company manufactures a personal computer designed for use in schools and markets it under its own label. Walton has the capacity
4 03:12:53 Walton Company manufactures a personal computer designed for use in schools and markets it under its own label. Walton has the capacity to produce 32,000 units a year but is currently producing and selling only 20,000 units a year. The computer's normal selling price is $1,770 per unit with no volume discounts. The unit-level costs of the computer's production are $420 for direct materials, $190 for direct labor, and $190 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Walton during the year are expected to be $2,120,000 and $801,000, respectively. Assume that Walton receives a special order to produce and sell 3,130 computers at $1,220 each. Required Calculate the contribution to profit from the special order. Should Walton accept or reject the special order? Contribution to profit Should Walton accept or reject the special order?
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