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Jet, Inc. receives a onetime order that is not considered part of its normal ongoing business. Jet, Inc. makes a single product with a unit
Jet, Inc. receives a onetime order that is not considered part of its normal ongoing business. Jet, Inc. makes a single product with a unit variable manufacturing cost of $7. Normal selling price is $20 per unit. A foreign distributor offers to purchase 3,000 units for $10 per unit. Annual capacity is 10,000 units, and annual fixed costs total $48,000, but Jet, Inc. is currently producing and selling only 5,000 units. l Reguired: Should Jet accept the offer? (10 marks)
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