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Benson Company manufactures a personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 39,000

Benson Company manufactures a personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 39,000 units a year but is currently producing and selling only 12,000 units a year. The computers normal selling price is $1,730 per unit with no volume discounts. The unit-level costs of the computers production are $580 for direct materials, $250 for direct labor, and $170 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Benson during the year are expected to be $2,110,000 and $812,000, respectively. Assume that Benson receives a special order to produce and sell 3,110 computers at $1,300 each.

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Calculate the contribution to profit from the special order. Should Benson accept or reject the special order?

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