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Byways Production has an annual capacity of 80,700 units per year. Currently, the company is making and selling 78,200 units a year. The normal sales
Byways Production has an annual capacity of 80,700 units per year. Currently, the company is making and selling 78,200 units a year. The normal sales price is $103 per unit; variable costs are $65 per unit, and total fixed expenses are $2,000,000. An out-of-state distributor has offered to buy 5,500 units at $75 per unit. Byways cost structure should not change as a result of this special order.
By how much will Byways
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