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Huron Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $0.60 per unit and
Huron Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $0.60 per unit and fixed costs are $0.50 per unit. Current monthly sales are 173,000 units. Lord Company has contacted Huron Company about purchasing 20,000 units at $1.00 each. Current sales would not be affected by the special order, though the order requires additional setup of $1,500. Required: 1. What is the net cost or benefit if Huron accepts
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