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A company receives a special one-time order for 3,000 units of its product at $15 per unit. The company has excess capacity and it currently
A company receives a special one-time order for 3,000 units of its product at $15 per unit. The company has excess capacity and it currently produces and sells the units at $20 each to its regular customers. Production costs are $13.50 per unit, which includes $9 of variable costs. To produce the special order, the company must incur additional fixed costs of $5,000. Should the company accept the special order? Yes, because incremental revenue exceeds incremental costs. O No, because incremental costs exceed incremental revenue. No, because the units are being sold for $5 less than the regular price. No, because incremental cost exceeds $15 per unit when total costs are considered
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