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Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 26,000 medals each month;

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Kneller Co. manufactures and sells medals for winners of athletic and other events. Its manufacturing plant has the capacity to produce 26,000 medals each month; current monthly production is 10,000 medals. The company normally charges $94 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials $455, 700 Direct labor $145, 800 Selling and administrative $ 23, 600 Fixed costs: Manufacturing $136, 100 Selling and administrative $ 74, 500 The company has just received a special one-time order for 400 medals at $82 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable cost. Required: Should the company accept this special order? Accepted Not accepted

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