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Company A has excess capacity. Company management has been approached by a new customer to fill a large one-time order for 500 widgets, a product

Company "A" has excess capacity. Company management has been approached by a new customer to fill a large one-time order for 500 widgets, a product similar to one offered to regular customers. The following information applies to sales to regular customers:

Sales (10,000 units) $5,000,000

Direct materials $2,000,000

Direct labour 1,000,000

Variable manufacturing support 300,000

Fixed manufacturing support 100,000

Total manufacturing costs 3,400,000

Profit $1,600,000

What is the price for each additional widget at which overall profit will not change - REQUIRED with Calculation

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