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Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a slightly customized version
Assume a company is considering whether to accept or reject a special order opportunity to sell a customer 300 units of a slightly customized version of one of its products for $39.25. The normal selling price of this product is $48 per unit. It can fulfill the order using existing manufacturing capacity. The company's accounting system estimates the following unit product cost for this product: The customization would increase variable manufacturing overhead costs by $2/ unit. The special order would have no effect on the company's other sales. What is the financial advantage (disadvantage) of accepting this special order
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