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PLEASE EXPLAIN HOW TO GET ANSWERS Relevant Costs for Decision Making Haynes Company has been approached by a new customer with an offer to purchase
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Relevant Costs for Decision Making Haynes Company has been approached by a new customer with an offer to purchase 1, 500 units of Haynes's product at a price of $8 each. The new customer is geographically separated from Haynes's customers, and there would be no effect on existing sales. Haynes normally produces 10,000 units but only plans to produce and sell 8,000 in the coming year. The normal sales price is $11.50 per unit. Unit cost information is as follows: If Haynes accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity. However, the distribution center at the warehouse is operating at full capacity and would need to add capacity costing $2,000. Required: Determine the impact on the company's profits if the special order is acceptedStep by Step Solution
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