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Company A sells floor mats to schools for PE classes. For the first 6 months of 2019 the company had the following operating results. They
Company A sells floor mats to schools for PE classes. For the first 6 months of 2019 the company had the following operating results. They are at 80% capacity Variable Fixed Current Numbers Sales (100,000 uni $7,000,000 without the offer Cost of goods sold 4,200,000 3150000 1050000 Gross profit 2,800,000 Operating expense 2,000,000 1400000 600000 Net income $800,000 The company received a special offer from a large school district to buy 600 mats at $45 each If they accept the offer, Fixed Costs will not change but they will have $1,500 additional shipping costs Show with an analysis why they should accept or reject this offer
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