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5,000 tents per year at a selling price of $1,100 per tent. The cost of producing and selling one tent follows: The company has received
5,000 tents per year at a selling price of $1,100 per tent. The cost of producing and selling one tent follows: The company has received a special order for 900 tents at a price of $640 per tent from Chipman Outdoor Center. It will not havelso pay any sales commission on the special order, so the variable selling and administrative costs would be only $49 per tent The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Required: a. What is the impact on profit for the year if Nardin Outfitters accepts the special order? b. Do you agree with the decision to reject the special order? Complete this question by entering your answers in the tabs below
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