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Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to purchase 23,000 units of

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Huang Automotive is presently operating at 75% of capacity. The company recently received an offer from a Korean truck manufacturer to purchase 23,000 units of a power steering system component for 1197 per unt. Peter Wu, viceprident of sales, note that although there will be an additional $2.25 shipping cost for each component, he thinks that compting the order will get the company's "oot in the door of an expanding international market To determine variable and fed costs, Huang's accountant used the high-low method with the following production and cost information for the last two years: 192,000 unite 233,000 units Tots $46,532,000 555.543,000 Total costs per unit $252.77 TJ. Chan, vice-president of engineering, feels that any new market should first show its profitability and that the $197 per unit offer is not only below the regular 1250 selling price, but it's below the unit cost of me component. She points out that there will be additional setup costs of $200,000 and that ang will have to loose some special equipment for $210,000. REQUIRED 1. Using the high-ow method to develop Huang's cost function, what would the expected profit on the special order be (use a negative sign for a loss? Tres 0/6

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