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ACCEPT A SPECIAL ORDER? The cost of producing and selling a single unit of product includes the following: direct materials $2.25, direct labor $2.75, variable
ACCEPT A SPECIAL ORDER? The cost of producing and selling a single unit of product includes the following: direct materials $2.25, direct labor $2.75, variable manufacturing overhead $.25, fixed manufacturing overhead $4.00, variable selling and administrative expenses $1.25, fixed selling and administrative expenses $1.75. The normal selling price is $14 per unit, and the company has idle capacity. If the company accepts a special order of 1500 units at a selling price of $12.00 per unit, how much will monthly profits increase or decrease if the order does not affect fixed costs
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