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ANSWER WHOLE QUESTION M7-5 (Algo) Analyzing Special-Order Decision [LO 7-2, 7-3] Blowing Sand Company has just received a one-time offer to purchase 8.000 units of
ANSWER WHOLE QUESTION
M7-5 (Algo) Analyzing Special-Order Decision [LO 7-2, 7-3] Blowing Sand Company has just received a one-time offer to purchase 8.000 units of its Gusty model for a price of $23 each. The Gusty model normally sells for $31 and costs $27 to produce ($19 in variable costs and $8 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order. 1. Should Blowing Sand accept the special order? Yes 2. Calculate the increase or decrease in short-term profit from accepting the special order. Profs by Step by Step Solution
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