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Harcourt Manufacturing ( HM ) has the capacity to produce 1 1 , 4 0 0 fax machines per year. HM currently produces and sells
Harcourt Manufacturing HM has the capacity to produce fax machines per year. HM currently produces and sells units per year. The fax machines normally sell for $ each. Modem Products has offered to buy fax machines from HM for $ each. Unitlevel costs associated with manufacturing the fax machines are $ each for direct labor and $ each for direct materials. Productlevel and facilitylevel costs are $ and $ respectively. How much would profit increase decrease if HM accepted this special order?
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