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Perez Company manufactures a personal computer designed for use in schools and markets it under its own label. Perez has the capacity to produce 39,000
Perez Company manufactures a personal computer designed for use in schools and markets it under its own label. Perez has the capacity to produce 39,000 units a year but is currently producing and selling only 11,000 units a year. The computer's normal selling price is $1,650 per unit with no volume discounts. The unit-level costs of the computer's production are $540 for direct materials, $120 for direct labor, and $170 for indirect unit-level manufacturing costs. The total product and facility-level costs incurred by Perez during the year are expected to be $2,290,000 and $803,000, respectively. Assume that Perez receives a special order to produce and sell 3,020 computers at $1,280 each 10 points Required Calculate the contribution to profit from the special order. Should Perez accept or reject the special order? (8 0472 Contribution to profit Should Perez accept or reject the special order
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