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Donald Company is considering a special-order opportunity from one of its customers. The customer would like to purchase a large volume of Product A for
Donald Company is considering a special-order opportunity from one of its customers. The customer would like to purchase a large volume of Product A for $18 per unit. The normal selling price is $25. Based on current normal activity levels, the variable cost per unit has been $15 and the fixed cost per unit has been $6. Assuming that acceptance of this special-order would not harm business relations with other customers, Donald Company should accept this special-order.
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