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George Jeffers manages a company producing men's suits, offering both made - to - order and standard suits in retail stores. The provided table is

George Jeffers manages a company producing men's suits, offering both made-to-order and standard suits in retail stores. The provided table is a forecasted income statement for March. George has firm orders for the 10 custom suits indicated in the forecast. Depreciation is at $1 per machine hour used, making it a variable cost. Total machine hours for March are 900, with 600 dedicated to custom suits. The building space, rented at $7,000 per month, allocates costs based on space usage.
George faces a decision regarding a special request from a wardrobe consultant, who offers $24,000 for a suit needed in early April. Fulfilling the order would require reducing standard suit production, with a loss of future production capacity. Costs for the special order are an additional $6,000 for materials, $10,000 for labor, and 140 machine hours. Accepting the order would save 150 hours of standard suit production.
Considering this, George must ponder:
Should he accept the special order, and what rationale supports the decision? Show calculations
What minimum price should be set for the special order to remain profitable? Show work\table[[,Custom Suits,Standard Suits,Total],[Number of Suits,10,20,30],[Sales Revenue,$50,000,$30,000,$80,000
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