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Cost-Volume-Profit (CVP) Analysis with Constraints and Special Order : A company manufactures a product with a selling price of $100 per unit and variable costs
Cost-Volume-Profit (CVP) Analysis with Constraints and Special Order: A company manufactures a product with a selling price of $100 per unit and variable costs of $60 per unit. The company's fixed costs are $50,000 per month. Due to capacity constraints, the company can only produce and sell 1,000 units per month. The company receives a special order for an additional 200 units at a price of $80 per unit. Determine whether the company should accept the special order, considering the capacity constraint and relevant costs.
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