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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 15,000 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 15,000 medals each month; current monthly production is 10,000 medals. The company normally charges $101 per medal. Cost data for the current level of production are shown below: Variable costs: Direct materials $489, 600 Direct labor $156, 700 Selling and administrative $ 25, 400 Fixed costs: 01:04:19 Manufacturing $146,600 Selling and administrative $ 80, 200 The company has just received a special one-time order for 400 medals at $89 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 O Not accepted

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