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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 27,000
Benson Company manufactures a personal computer designed for use in schools and markets it under its own label. Benson has the capacity to produce 27,000 units a year but is currently producing and selling only 12,000 units a year. The computer's normal selling price is $1,610 per unit with no volume discounts. The unit-level costs of the computer's production are $560 for direct materials, $210 for direct labor, and $130 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Benson during the year are expected to be $2,100,000 and $812,000, respectively. Assume that Benson receives a special order to produce and sell 3,090 computers at $1,230 each. Required
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