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Problem 2: Special order Decision Rayburn's tents has the capacity to produce 10,000 tents per year and currently is producing and selling 1,000 tents. -
Problem 2: Special order Decision Rayburn's tents has the capacity to produce 10,000 tents per year and currently is producing and selling 1,000 tents. - Normal selling price for a tent is $470 - Until - level costs are $100 for direct materials, $200 for direct labor and $25 for other manufacturing costs - Facility-Level costs $80 are allocated to each tent. Rayburn's has received special order for $1,500 tents at $308 each. Required: a) Should Rayburn's accept the special order? Support your answers with appropriate calculations. b) What qualitative factors should a company consider in deciding whether or not to accept a special order
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