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Exerclse 6.7A (Algo) Special order decision LO 6-2 Solomon Company manufactures a porsonal computer designod for use in schools and markets it under its own

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Exerclse 6.7A (Algo) Special order decision LO 6-2 Solomon Company manufactures a porsonal computer designod for use in schools and markets it under its own label. Solomon has the capacity to produce 26,000 units a year but is currently producing and seling only 13,000 units a year. The computer's normal selling price is $1,700 per unit with no volume discounts. The unitetevel costs of the computer's production are $520 for direct materials. \$210 for direct laboc. and \$190 for indirect uni-tevel manufacturing costa. The total product-and faclity-level coste incurred by Solomon during the year are expected to be $2240,000 and $816,000 respectively. Assume that Solomon recelves a speclat order to produce and sell 3.200 computers at $1.250eoch. Requlred Calculate the contribution to profit from the special ordec Should Solomon accept or reject the special order

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