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pleas help ****read question carefully**** Smooth Move Compony manufoctures professional paperweights and has been approsched by a new customer with an offer to purthase 15,000
pleas help ****read question carefully****
Smooth Move Compony manufoctures professional paperweights and has been approsched by a new customer with an offer to purthase 15,000 units at a per-unit price of \$7.00. The new cutomer is geographically separated from 5 mooth Move's other customers, and existing soles witi not be affocted. 5 smooth Move normally produces 95,000 units but plans to produce and sell only 65,000 in the coming year. The normat sales price is $12 per unit. Unit cost information is as follows: Suppose a customer wants to have its company logo affixed to each paperweight using a label. 5 mooth Move would have to purchase a special logo isbeling machine that will cost \$12,000. The machine will be abie to label the 15,000 units and then it will be scrapped (with no further value). No other fixed overhead activities will tee inturred. In adeition, each special logo requires additional direct materials of $0.20. Required: CONCEDTUAL CONNECTION: Should Smboth Move accept the special order? By how much will profit increase or decrease if the order is accepted? if your answer is decrease, enter negative value Step by Step Solution
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