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Problem 5 - Dress for Success produces a man's suit that sells for $200. Although the company's production capacity is 3,000 suits per year, only
Problem 5 - Dress for Success produces a man's suit that sells for $200. Although the company's production capacity is 3,000 suits per year, only 2,500 suits are currently being produced and sold. At this level of production, the company incurs the following costs:
BizDress has offered to purchase 500 suits as a one-time special purchase at a price of $130.
Required:
Prepare a quantitative analysis that indicates whether the special order should be accepted. Show supporting calculations, and be sure to identify decision to accept or not accept the order.
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