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Miko Company manufactures a personal computer designed for use in schools and markets it under its own label. Miko has the capacity to produce 42,000

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Miko Company manufactures a personal computer designed for use in schools and markets it under its own label. Miko has the capacity to produce 42,000 units a year but is currently producing and selling only 16,000 units a year. The computer's normal selling price is $1,760 per unit with no volume discounts. The unit-level costs of the computer's production are $490 for direct materials, $250 for direct labor, and $130 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Miko during the year are expected to be $2,120,000 and $811,000, respectively. Assume that Miko receives a special order to produce and sell 3,130 computers at $1,260 each. Required: Calculate the contribution to profit from the special order. Should Miko accept or reject the special order? Accept Reject

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