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Hoth Company mines and manufacturos kyber crystals designed for use in light sabers. The company markets the crystals under its own label Hoth has the
Hoth Company mines and manufacturos kyber crystals designed for use in light sabers. The company markets the crystals under its own label Hoth has the capacity to mine and produce 41000 units a year but is currently mining, producing and selling only 14.000 units a year. The crystals normal selling price is $1790 per unit with no volume discounts. The unit level costs of the crysar's mining and production are $600 for direct materials, 5210 for direct labor, and $140 for indirect level manufacturing costs. The total product and facility level costs incurred by Hoth during the year are expected to be $2.110,000 and $812.000, respectively. Assume that Hoth receives a special order to mine, produce and sell 3,090 crystals at $1,270 each Required Calculate the contribution to profit from the special order. Should Hoth accept or reject the special order? Contribution to pront Should Hoch accept or reject the special order
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