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Assume that Magnolia expects to produce and sell 4,000 pairs of Medina during the current year. One of Magnolia's sales representatives has found a
Assume that Magnolia expects to produce and sell 4,000 pairs of Medina during the current year. One of Magnolia's sales representatives has found a new customer that is willing to buy 500 additional pairs for a price of $335 per pair. If they accept the customer's offer, it will decrease sales to regular customers by 200 pairs. Should they accept this special order? Show all work/calculations to justify your decision. 3 4 5 6 Pairs 7 Price per pair 8 9 Incremental variable costs:: per unit 10 11 12 13 14 Total incremental variable cost 15 Contribution Margin 16 17 Incremental Net Operating Income 18 Decision 19 New Lost 201 Requirement 2 Assume that Magnolia expects to produce and sell 4,000 units during the current quarter. A supplier has offered to manufacture and deliver 4,000 units for a price of $190 per unit. Should Magnolia accept this offer? How much will profit's increase or decrease? Show all work/calculations to justify your decision. 222 21 22 23 Make Buv
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