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Jordan Company manufactures a personal computer designed for use in schools and markets it under its own label. Jordan has the capacity to produce 25,000
Jordan Company manufactures a personal computer designed for use in schools and markets it under its own label. Jordan has the capacity to produce 25,000 units a year but is currently producing and selling only 18,000 units a year. The computer's normal selling price is $1,640 per unit with no volume discounts. The unit-level costs of the computer's production are $580 for direct materials, $110 for direct labor, and $120 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Jordan during the year are expected to be $2,230,000 and $816,000, respectively. Assume that Jordan receives a special order to produce and sell 3,160 computers at $1,210 each. Required Calculate the contribution to profit from the special order. Should Jordan accept or reject the special order? Contribution to profit Should Jordan accept or reject the special order
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