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Gibson Company manufactures a personal computer designed for use in schools and markets it under its own label. Gibson has the capacity to produce 40,000

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Gibson Company manufactures a personal computer designed for use in schools and markets it under its own label. Gibson has the capacity to produce 40,000 units a year but is currently producing and selling only 12,000 units a year. The computer's normal selling price is $1,670 per unit with no volume discounts. The unit-level costs of the computer's production are $590 for direct materials, $110 for direct labor, and $180 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Gibson during the year are expected to be $2,100,000 and $817,000, respectively. Assume that Gibson receives a special order to produce and sell 3,090 computers at $1.250 each. Required Calculate the contribution to profit from the special order. Should Gibson accept or reject the special order? 01.5145 Contribution to profit Should Gibson accept or reject the special order

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