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BRIEF EXERCISE 9-7 Deciding Whether to Accept or Reject a Special Order [LO1 - CC5] Sinclair Limited normally operates at 80% of its monthly production
BRIEF EXERCISE 9-7 Deciding Whether to Accept or Reject a Special Order [LO1 - CC5] Sinclair Limited normally operates at 80% of its monthly production capacity of 5,000 units. Its selling price is $30 per unit and variable costs amount to $22 per unit. At its normal level of capacity utilization, total monthly fixed costs amount to $3 per unit. A special order is received for 100 units at a price of $25 per unit. Required: Should Sinclair accept the special order?
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