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Metro Company produces a product with a $30 per-unit variable cost and an $80 per-unit selling price. Fixed manufacturing overhead costs are $100,000 per year.

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Metro Company produces a product with a $30 per-unit variable cost and an $80 per-unit selling price. Fixed manufacturing overhead costs are $100,000 per year. The company has received a special order request to sell an additional 15,000 units at a discounted price of $60 per unit. The special order units will not incur a $2 per unit variable shipping cost that is associated with regular sales. Assume Metro Company has the capacity to produce 80,000 units and they are currently selling 74,000 units to regular customers. Calculate the amount of the increase in company profits if Metro Company accepts the special order

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