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ABC Company produces a single unit that it sells for $18 per unit. ABC has the capacity to produce 15,000 units each month. ABC is
ABC Company produces a single unit that it sells for $18 per unit. ABC has the capacity to produce 15,000 units each month. ABC is currently selling 12,000 units each month. The costs associated with each unit appears below: direct materials $5.00 direct labor $3.00 variable overhead $0.75 fixed overhead $1.50 variable selling costs $0.25 fixed selling costs $1.00 ABC Company has received a special order from a customer who wants to purchase 5,000 units at a reduced price of $13 per unit. ABC Company has determined that there would be no selling expenses in connection with this special order. Calculate the increase in company profits if ABC Company accepts the special order
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