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ABC Company has the capacity to produce 54,000 units of product each month. Currently, ABC Company is selling 36,000 units at a selling price
ABC Company has the capacity to produce 54,000 units of product each month. Currently, ABC Company is selling 36,000 units at a selling price of $48 each. The following costs are incurred in order to produce each unit: variable costs fixed costs $29 $11 ABC Company has received a special order from a customer who wants to purchase 25,000 units at a reduced selling price of $31 per unit. ABC Company has determined that the variable costs for the special order units would be reduced by 20%. Calculate the amount of the increase in company profits if ABC Company accepts the special order.
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